A New Phase for Private Tech
- Jacob Svensson
- 6 days ago
- 2 min read
May 12 2025 | The tech investment landscape is entering a new phase. After two years marked by caution, compressed valuations, and selective investors, 2025 is shaping up to be the year the private tech market returns to normal, despite lingering concerns about new tariffs and other global risks.
Several signals point toward a stabilizing and more optimistic environment. Interest rates have come down, public markets have rebounded, and there are signs of the IPO window starting to open. These macro factors are helping shift investor sentiment back toward growth and risk which, in turn, is good news for the private tech market.
A Renewed Risk Appetite
“We’re already seeing investors take on more risk,” says SV Ventures CEO Erik Arnetz.
“During 2022 and 2023, most capital went toward profitable companies. But now, we’re seeing renewed interest in high-growth companies that may not yet be profitable, but are scaling fast with strong fundamentals.”
This shift in sentiment reflects a broader market reset, one where investors are moving away from extreme caution and beginning to lean into long-term opportunity.
Private Markets as a Destination
Perhaps the most significant shift, according to Arnetz, is a growing recognition that private markets are no longer just a stepping stone. They’re becoming a long-term home for category-defining companies.
In the US, companies like SpaceX and OpenAI have set the tone — and Arnetz believes a similar trend will take hold in Sweden.
“Processes are moving faster now than in 2022 or 2023,” he explains.
“Entrepreneurs with solid unit economics and big visions are able to go to market and raise capital efficiently.”
Arnetz remains optimistic about the months ahead. He believes 2025 will see more IPOs, larger funding rounds, and more ambitious tech companies choosing to scale on their own terms, without necessarily turning to public markets.
Explore the Full Episode
In the latest episode of Private Tech Insights, Erik Arnetz dives deeper into the current market environment and shares strategic perspectives for investors and founders on how to navigate 2025.