In last month’s newsletter, we discussed how nontraditional investors have been shifting their focus toward late-stage startups, and how climate-tech companies have been adapting to a tougher fundraising environment by exploring alternative markets.

This month, we take a closer look at how venture capital (VC) investors are recalibrating their strategies in response to shifting global dynamics, as revealed in PitchBook’s H1 2025 VC Tech Survey.

Rather than reacting with alarm, investors appear to be making calculated adjustments, balancing caution with continued interest in emerging opportunities. Tariffs, while not directly affecting software and services, are expected to have ripple effects across the tech ecosystem, particularly in the hardware and semiconductor sectors. A significant majority of investors anticipate increased supply chain costs and slower growth, signaling a need for startups in these areas to prepare for headwinds.