In its Global Markets Snapshot, PitchBook has examined the private and public market landscape, offering insights for investors navigating a complex economic environment.
The report highlights key trends in venture capital (VC), private equity (PE), and mergers and acquisitions (M&A), while addressing the impact of macroeconomic factors such as tariffs, inflation, and geopolitical tensions.
Drawing on PitchBook’s proprietary data, the snapshot underscores a market poised for potential recovery, tempered by ongoing challenges.
The report noted that an analysis of public market indexes revealed a somewhat mixed performance in Q1 2025.
While global equities experienced volatility due to tariff-related uncertainties, certain sectors, notably technology and healthcare, demonstrated resilience.
PitchBook’s private market indexes, including the PitchBook VC Index, reported a modest uptick in valuations, driven by strong performances in artificial intelligence (AI) and identity verification startups.
Specifically, AI-driven ID verification firms saw a 166% surge in funding in Q1 2025, reflecting heightened demand for cybersecurity solutions amid rising digital threats.
Venture capital activity in Q1 2025 indicates a nuanced picture.
The PitchBook-NVCA Venture Monitor, referenced in the snapshot, noted a strong start with high-profile deals, including CoreWeave’s IPO and OpenAI’s $40 billion funding round.
However, overall VC deal volume declined, with only $10 billion in new commitments—the lowest annual fundraising in a decade.
The report attributes this to a high demand/supply imbalance and tariff-induced delays in major IPOs, which have dampened liquidity.
Despite these headwinds, PitchBook analysts remain cautiously optimistic about a VC market rebound in 2025, particularly in AI and biotech, where investor interest remains robust.
Private equity markets faced similar challenges, with deal activity constrained by market uncertainty and tariff pressures.
The snapshot highlights a 36.4% year-over-year drop in French startup investments, totaling €1.4 billion in Q1 2025, indicative of broader European market softness.
Meanwhile, PE firms are increasingly eyeing public-to-private transactions, capitalizing on undervalued public assets.
PitchBook’s Private Capital Return Barometers suggest that recent public market sell-offs could impact PE fund performance if tariff delays persist, yet the report notes an uptick in PE exits, signaling potential relief for fundraising constraints.
M&A activity in Q1 2025 reflected cautious dealmaking, with PitchBook’s VC Dealmaking Indicator showing a startup-friendly environment for early-stage ventures but tighter conditions for late-stage firms.
The report emphasizes the role of data-driven insights, such as PitchBook’s deal-level metrics, in helping investors navigate this uneven terrain.
Additionally, the snapshot underscores the growing importance of diversified income streams, with PE and VC managers leaning into evergreen funds and infrastructure investments to offset fundraising challenges.
Looking ahead, PitchBook’s analysts predict that 2025 could mark a turning point for private markets, provided firms address the backlog of held companies and capitalize on sector-specific opportunities.