Venture Capital Market Intelligence

Q4 2025 Industry Report

Valuation resets, liquidity constraints, and the new fundamentals shaping venture outcomes

The venture capital market continued its structural reset in Q4 2025. After years of abundant capital and aggressive valuation growth, both investors and founders are recalibrating expectations around capital efficiency, governance, and exit timing.

Slower fundraising cycles, extended holding periods, and heightened scrutiny of unit economics are redefining what durable venture outcomes look like. This report examines how these shifts are influencing valuations, portfolio performance, and liquidity planning across the venture ecosystem.

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What’s Inside the Q4 2025 Venture Capital Industry Report

Market Trends & Investment Dynamics

  • Valuation expectations resetting across stages as growth gives way to efficiency
  • Diverging performance across AI-enabled platforms, enterprise software, fintech, and consumer technology

Fundraising & Capital Availability

  • Fundraising timelines lengthening as LPs become more selective
  • Evolving expectations around pacing, reserves, and portfolio construction

Financial Performance & Valuation Insights

  • Operating metrics such as burn multiples and runway becoming central to valuation support
  • Increasing separation between high-performing and underperforming portfolio companies

Exit & Liquidity Landscape

  • M&A activity taking precedence over IPOs as the primary liquidity path
  • Longer holding periods reshaping fund-level returns and exit planning assumptions

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About Houlihan Capital’s Venture Capital Expertise

Houlihan Capital advises venture-backed companies, funds, and institutional investors across the venture lifecycle. Our work spans independent valuations, transaction advisory, and strategic guidance for capital raises, liquidity events, and portfolio decision-making.

Venture Capital Services: Portfolio Valuations | Fairness Opinions | Transaction Advisory | Exit Readiness | LP & GP Support

Questions? Contact our venture capital specialists at info@houlihancapital.com or 312.450.8600

This content is for informational purposes only and does not constitute investment advice.