Recent Inflation and Venture Capital Trends

Inflation Trends and Fed Uncertainty in 2025

The Federal Reserve is expected to cut interest rates again in mid-December, but the long-term outlook for 2025 remains unclear. Recent inflation data suggests progress in reducing price increases may be stalling, creating uncertainty about how aggressive future rate cuts will be.

Fed Governor Christopher Waller remains optimistic about beating inflation, but also acknowledged it could stay above the Fed's 2% target for longer than anticipated.

For family offices and accredited investors, ongoing inflation could create more opportunities in assets like Treasury Inflation-Protected Securities (TIPS) or commodities. Sectors such as energy and materials, which tend to do well during inflation, could also be worth considering.

Rising Private Stock Tenders Signal Change in VC Sector

Private stock tenders are becoming more common as venture-backed startups negotiate a slow IPO market. In Q3 2024, tender activity rose 44% year-over-year, with 26 transactions—the highest quarterly total in two years, according to new data from Carta.

Recent high-profile tenders include OpenAI’s $1.5 billion deal with SoftBank and upcoming offers from Databricks and Veeam.

For investors, these tenders could offer a way to get liquidity in the private market. Their growth is fueled by booming sectors like AI and tech startups, signaling potential long-term shifts in investment trends.

Stay informed on developments shaping the economy and investment opportunities. Sign up for our free LinkedIn Newsletter today.