In 2025, venture capitalists anticipate a more favorable exit environment, driven by Service Titan’s $625 million IPO and other successful listings. However, optimism leans towards increased M&A activity rather than IPOs. Factors supporting M&A include expected interest rate cuts and fewer antitrust challenges with Trump’s return. Private equity funds are eager to invest, while companies are focusing on profitability, attracting potential acquirers. Despite a rise in global startup funding, concerns about inflated valuations persist, particularly for high-profile AI deals. A significant number of companies are eyeing public listings, yet many may choose to wait for optimal conditions.