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Tech funding in 2025: Strategies and challenges from technology industry leaders

Apr 23, 2025 · Authored by DeRonnie Pitts, Fidelity Private Shares; Matthew Nichols, Commerce Ventures; Okan Inaltay, ComCap; Mark Orttung, Projectworks

From the 2025 Technology Finance Symposium - West

Ronnie Pitts, VP at Fidelity Private Shares, opened this session by introducing a distinguished panel to discuss the evolving fundraising landscape. The panel included Mark Orttung, CEO of Projectworks; Matt Nichols, partner at Commerce Ventures; and Okan Inaltay, director at ComCap and head of its SaaS practice.

Orttung kicked off the discussion by highlighting the challenges startups face in today’s market, particularly the tension between growth and profitability. He noted, “You’ve got lots of competition, people looking for valuations that are probably not going to happen, and investors who are a little bit skittish because it’s not clear what the path to exit is.” Orttung emphasized that while growth remains critical, efficiency of growth is now more scrutinized than ever.

Nichols offered the investor’s perspective, underscoring that growth still reigns supreme in venture capital, especially in sectors like AI. However, he stressed the importance of financial discipline: “It’s more about the story about where you will be in the future that matters (most).” Nichols advised founders to ensure their financial models reflect a believable path to profitability, especially in the final year of projections.

Inaltay addressed the current state of valuations and M&A activity. He observed that while valuations have normalized from the highs of 2021, deal-making is rebounding, with Q4 of the previous year marking a record for M&A activity in recent quarters. “Buyers and investors are getting a lot more creative,” Inaltay said, “providing structures that help bridge the gap through earnout structures or other protections that they have.”

The panel also explored alternative financing options. Inaltay noted a rise in debt financing and minority equity deals, while Nichols discussed the growing use of SAFEs and convertible notes. He cautioned that while these instruments offer flexibility, they can complicate future funding rounds if not managed carefully.

When asked about key performance indicators (KPIs), Orttung emphasized metrics like new monthly ARR, average contract value, and payback period, noting, “The more we can drive growth, the happier these guys over here [meaning bankers and investors] are going to be.”

Looking ahead, the panel agreed that vertical SaaS and AI-driven efficiency will shape the next wave of innovation. Inaltay advised founders to start investor conversations early and maintain regular updates, while Nichols warned against last-minute cap table surprises and vague revenue metrics.

The session concluded with a forward-looking discussion on AI’s impact, where Orttung remarked, “What differentiates you … is the data you have that’s unique to you that you can apply AI to – and that can help you create unique value for your customers that nobody else can.”