The VIX oscopy on the New York Stock Exchange (NYSE) in New York, the United States, on Wednesday, March 19, 2025. Federal Reserve officials kept the fixed standard interest rate of holding a second consecutive meeting, although they sent expectations for slower economic growth and high inflation.
Photographer: Michael Nagil Bloomberg Gety pictures
Already under pressure in the middle of last week Millions of the stock market for millions of dollarsThe investment capital industry is now facing a more strict look amid the constant uncertainty resulting from the American definitions.
The scarcity of initial public offers or merger and acquisitions – along with the direction that startups remain special now for a longer period – have placed tremendous stress on VC money. Investment capital owners can only realize their investments when the company is publicly published or sold, allowing them to leave.
Just days after the American President Donald Trump Plans to impose the so-called mutual definitions on a group of countries have announced that two major technology uniforms-Fintech Klarna and the Stumbhub-ticket platform that delayed plans for the public due to sharp diving in global stock markets. It is worth noting that both companies have provided the first public publication bulletin in recent weeks.
“No one can come up with this turmoil,” Tobias Bengdzel, a partner in the North Fund at VC Antler, told CNBC to a call on Thursday. “When the market is drowned as it is now … you have to do the same prediction of private markets.”
Difficult expects for VC
Since private markets do not move the same way in which public markets do, it becomes difficult for startups in the field of technology to go out and raise capital – whether from the stock market or investment capital – as it may end with the vision of their evaluation.
“We do not change the evaluation of startups just because the stock market has decreased,” said Bengtzel Eneard. The evaluation of startups supported by the project only tends to change when it raises a new shares round.
“This has a great impact on the money that is raised at the present time and startups that are raised from multi -stage investors,” he added.
This may soon make more difficult for startups-especially companies in the growth stage-to raise investment capital. In the following stage, companies tend to be more vulnerable to swinging in public markets than startups in the early stage, because they are closer to most of them to reach a public subscription teacher.
Private markets are less liquid than public markets, which means that investors cannot sell shares easily. The main method of private stock owners sells a part or all of their shares in the company via public subscription or integration and purchase – also known as “exit”. Another alternative is to sell shares to another investor in the secondary market.
Alex Bar, partner and head of the Special Market Funds Management Company, told CNBC on Thursday, adding that the subscriptions are still “a very monster of its management” (public partners) will be under pressure from (limited partners) to ensure these exits occur
Public partners are investors who run a project for projects, while limited partners are institutional investors-such as pension funds and hedge funds-or high-value individuals who are in money.
Limited Partners is investing in a project box in the hope that he will generate large returns over its life, which can extend for up to 10 years. Early funds invest in the hope that some startups in their portfolio will generate the type of returns like Uber and Spotify I gained their own supporters.
Hope in Europe’s technology?
On the bright side, the uncertainty can be an opportunity for private startups for private technology in Europe, according to London -based North Birzon’s North Birzon.
Malhi told CNBC: “The short term in the public subscription activity is a natural response to the disturbances in the last market, and we can expect that we have more clarity in the company’s positions as soon as some sense of stability is restored.”
However, he added that “if talent and liquidity finds that the United States environment is less hostile, the flow should go to a place, and Europe has an opportunity to benefit.”
Kriestl Peron, CEO of Startup Investor PSV, told CNBC that “silver lining” is the uncertainty created by the definitions is how “Europe is approaching together amid turmoil.”
“We see more founders choose to stay and expand here, driven by a growing sense of responsibility to help build a flexible European technical country,” said Peron.
There can also be other ways to get out of the investment capital boxes, according to Northzone’s MalHi – including mergers and acquisitions.
He told CNBC: “If the global subscription window is tight in the long run, we are still expecting a strong scene of integration and purchasing operations, as stakeholders seek to” problem -solving exits. “
However, he added that this raises the risk of forcing late companies on the so -called “tours down”, as startups collect funds in reduced reviews.
Malhi said: “We may also see an increase in the collection of donations at the next stage, as companies are looking to bridge the capitalist gap so that they can find these opportunities, albeit in possible assessments,” Malhi said.
Moreover, investors reserve hope for the return of major technical subscriptions later to Trump’s presidency. It was Vcs The Trump administration has been relied upon This led to the activation of the public subscription market.
“Many people feel that Trump promised them to open the public subscription market and open the merger and purchase markets market,” said Bengtzdal.
He added, “Six months have passed since his mandate,” noting that the market can tolerate the failure of the new administration to meet this pledge in its early days. “But people are demanding this to happen during his term.”
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