The US venture capital landscape in 2025 is expected to show modest improvement, driven by favorable market conditions and increased liquidity events. Key challenges include demand-supply imbalances, particularly in late-stage funding, and cautious investor sentiment amid macroeconomic uncertainties. Valuations are predicted to rebound, with stronger firms attracting competitive premiums, though high previous valuations may hinder revenue alignment. Anticipated unicorn IPOs could unlock significant liquidity, while a growing secondary market and increased M&A activity present further exit avenues. Despite fundraising hurdles for newer funds, overall VC fundraising is projected to surpass 2024 levels, signaling cautious optimism for the sector.