Part 2 of the 2025 venture investing preview discusses the funding environment for startups in the upcoming year. While some factors, such as a potential upswing in the IPO and M&A markets, may be positive, others, such as decreased regulation in buzzy startup sectors like crypto and continued fervor around artificial intelligence, may also affect funding. Artificial intelligence is expected to continue dominating the VC world, with AI-related startups raising over $87 billion in 2024. Investors believe that industries such as defense, environment/agtech, and healthcare will see considerable disruption from AI, while other sectors like fintech and energy may benefit from less regulation.