VC in 2025: Trump 2.0, AI Hype, & Rise of Secondaries

From Trump 2.0’s potential boost for M&As and $40 billion in AI foundational model funding to the rise of secondary transactions providing liquidity and SoftBank’s $100 billion commitment to US companies, 2024 brought significant shifts in funding priorities, valuation corrections, and global politics that are reshaping the venture capital and startup ecosystem for 2025.

In this episode of Enterprise Explores, Kevin Brockland, Managing Partner at Indelible Ventures, and Yeoh Chen Chow, Founder of 1% Advisory & Coaching, join us to unpack the major developments of 2024 and what they are watching for the year ahead. They dive into the AI funding boom, secondaries as a liquidity tool, Malaysia’s evolving role in Southeast Asia’s VC landscape, and how Trump 2.0 may impact M&A and regulatory frameworks.

Here are some AI-generated highlights of key areas covered in the conversation:

1. The 2024 VC Slowdown: The Southeast Asian venture capital space experienced a notable slowdown in 2024, with Malaysia seeing a limited number of deals. Kevin and Chen Chow examine how this impacted startup funding, valuations, and the evolving dynamics of capital flows in the region.

2. Global Political Shifts and VC: The return of Donald Trump and his administration’s likely regulatory rollbacks are expected to influence M&A activity and startup opportunities in the US. Kevin and Chen Chow analyse how these shifts, combined with the rise of Japanese investors and Malaysia’s ASEAN chairmanship, could create opportunities for Southeast Asian startups.

3. The Rise of Secondary Transactions: Secondary transactions emerged as a critical tool for providing liquidity to founders, early employees, and investors. The speakers highlight why secondaries are gaining traction, the typical discounts involved, and how these transactions are reshaping the VC landscape.

4. Liquidity Challenges for Investors: The conversation highlights the stark realities of limited distributions to LPs in Southeast Asia, with DPI figures as low as 0.4 for some vintages. The speakers discuss the implications for future fundraising and how this affects investor confidence in the region.

5. AI Hype vs. Substance: AI funding doubled in 2024, but separating hype from real value remains a challenge. Kevin and Chen Chow explore foundational models, productivity tools, and the potential for AI agents to transform business operations. They also discuss how AI might shift from a buzzword to a foundational layer for businesses of all sizes.

6. SoftBank’s $100B US Commitment: SoftBank’s $100 billion commitment to US companies under the Trump administration signals a strategic bet on AI, semiconductors, and innovation. The speakers reflect on SoftBank’s mixed legacy and what this move could mean for the VC landscape globally and in Southeast Asia.

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