The latest PitchBook survey reveals that venture capital investors are making “strategic adjustments as they navigate geopolitical uncertainty and technological transition.”
According to PitchBook’s H1 2025 VC Tech Survey, 52% of VC investors anticipate significant changes in the sector this year, an increase from 32% in late 2024. This upward trend is fueled by advancements in technologies like automated underwriting and generative AI copilots. However, many participants still face challenges, with nearly half pointing to unclear use cases as a major hurdle, followed by skills shortages and high implementation costs. Regulatory concerns have decreased, dropping from 55% to 39%.
Despite ongoing macroeconomic uncertainty, fintech remains a leading sector for growth capital, attracting 38% of allocations. Nonetheless, investor caution is increasing: 34% are now scrutinizing deals more closely, 44% are temporarily pausing investments for clarity, and 25% are scaling back on international opportunities due to renewed trade tensions.
The overall fundraising landscape has also cooled, with only 38% of respondents expecting an increase in VC funding this year, down from 58% in the second half of 2024. Liquidity expectations are becoming more conservative, as fewer anticipate improvements in exit opportunities.
As AI capabilities develop and geopolitical risks shift capital flows, fintech startups face mounting pressure to demonstrate clear value and robust AI strategies in a more selective market.