As we turn our thoughts to 2025, there is clearly significant enthusiasm in the financial world for a bust-out year in venture capital. Anecdotally, we can readily see that the number of transactions is increasing, and perhaps we are witnessing a paradigm change with a new robust market for private company financings. Hopefully, the dam holding back IPOs will break in 2025. Deal flow is definitely increasing, especially with respect to any enterprise related to AI.
The author and historian, Yuval Harari, recently wrote in his book Nexus: “Stories brought us together. Books spread our ideas – and our mythologies. The internet promised infinite knowledge. The algorithm learned our secrets – and turned us against one another. What will AI do?”
We don’t pretend to know the answer to that question, but we can suggest the following for 2025: Business still works best with personal connections. As such, meeting in person can and does make a difference in the nature and depth of relationships and connections. We urge our readers to think about meeting in person as much as possible this year. You may find the results pleasantly surprising.
Our lead story for this edition is an article about VC Funds Warehousing Investments: Traps for the Unwary. While warehousing investments is a great tool for jumpstarting the fundraising process, there are tax implications and potential regulatory issues that each fund manager must be mindful of. Our second article covers the fiduciary duties of directors when companies are in financial distress. This is an important topic for anyone who intends to be a director of an emerging company. Our company spotlight is on a medical device company called Surgimatix. This company has developed a pioneering solution for suturing with respect to laparoscopic surgery.
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