Who will get VC-backing in 2025?

Hey, I share some insights on the top sectors expected to raise in 2025.  Also; 

📊  - 2024 trumps 2023 in VC-backing

🎙️ - Scaling your business through M&A

🆓 - Nailing your 1st calls with investors

Welcome to issue 102.

In last week's episode, I spoke to Patrick Butler who shares the story of his pivot from a career coaching platform to a French-American football team, to a fraud prevention startup. Tune in to learn more about how he moved through these shifts and went on to secure equity and debt financing to scale BizDefender.

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Data Corner

What's next for 2025?

VC-backed startups raised more in 2024 than in 2023, but it doesn’t feel like it. Why? Because the vibe comes from the number of deals, not the dollars.

Early-stage rounds (Seed + Series A) dropped 13% YoY, while late-stage (Series D+) saw $7.6B more on just 29 extra rounds. Fewer deals overall, but the big ones are huge.

1. Late-stage rises with IPOs returning (slowly).
2. Early-stage funding improves, but bootstrapping gains ground.
3. AI hype spreads beyond SF.

Early-stage stays weird; late-stage keeps booming. Buckle up.

Raising Capital for your startup?

Thunder's mission is to guide founders toward the right path to reach their North Star, be it through securing equity or debt financing or navigating the path to a successful exit. 

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Fundraising in 2025: Innovate or Hibernate

I’ve been in this game long enough to know one thing: fundraising trends aren’t random. They’re a reflection of where the world is headed. In 2025, if you’re not innovating in one of these key areas, you’re in for a rough ride. Investors are chasing the future, not incremental improvements. So, the question is: are you building something that makes them lean forward, or are you part of the noise?

Here’s the playbook for where the big money is flowing next year.

American Dynamism: The New Frontier

• Nuclear Renaissance: AI’s insatiable appetite for data is lighting up a nuclear comeback. Old plants reopening. New reactors on the rise. If you’re innovating here, you’re in the right room.
• Hardware-Software Fusion: Robotics, automation, and manufacturing are starved for engineers who can make machines dance with code.
• Space as a Playground: Starship’s cheap(er) launches mean we’re talking about space factories, not sci-fi anymore.

Crypto: Still Here, Still Weird

• AI Wallets: Bots managing crypto portfolios. Risky? Maybe. Exciting? Definitely.
• Decentralized Chatbots: The rise of chatbots that answer to no one.
• Proof of Personhood: Say goodbye to bot armies; AI can now tell who’s human.

Enterprise + Fintech: Less Boring Than It Sounds

• AI Compliance: Lawyers rejoice—your admin load just got lighter.
• Scalable Services: AI makes service businesses scale like SaaS.
• Interfaces of the Future: AI-native tools will change how we interact with software.

Games: Next-Level Immersion

• AI Storytelling: Pixar, but interactive and powered by AI.
• Virtual BFFs: AI companions who remember your favorite jokes.
• Anonymous Creators: Content from creators you’ll never meet IRL.

Infrastructure: Powering the AI Race

• Compute Facilities: Whoever builds the fastest AI centers wins.
• Edge AI Growth: Smaller, local AI models are taking over.

Smarter Reasoning: AI’s getting better at complex problem-solving.

Bio + Health: Solving Real Problems

• Common Disease Focus: The GLP-1 frenzy is redirecting biotech toward diseases that actually affect millions.
• DIY Health Insights: Wearables + AI = Patients who know their cholesterol before their doctors do.
• Staffing Superpowers: Automating admin tasks to patch the healthcare workforce gap? Yes, please.

Consumer: AI Gets Personal

• Specialized Video AI: Forget generic deepfakes—this is about finely-tuned, high-quality video generation.
• Your AI Memory: AI is organizing your digital chaos into personal goldmines.
• Your AI Ghostwriter: Finally, an AI that writes like you. (Or better?) Source

Why This Matters

I’ve seen too many founders fight uphill battles because they weren’t paying attention to market signals. Innovation isn’t just about being clever; it’s about aligning with where capital and customers are heading.

If your startup isn’t intersecting with these trends, take a step back. Are you in the right sector? Are you solving a problem that truly matters in 2025? It’s not too late to pivot, but the clock is ticking.

Investors aren’t looking for tweaks—they want paradigm shifts. So ask yourself, is your startup in the “fund me now” zone or the “maybe next time” pile? If you’re unsure, figure it out.

Free Fundraising Resources

That very first call with an investor could make or break your relationship. Find out how to get that all-important second call on your way to funding here:    The guide to nailing your first investor call- Download it Here