What does the future look like? 2025

What does the future look like?

Not a clue - but I’ll give my predictions a go for the UK tech scene, and throw in some gifs for good measure.

As we shuffle and skip into 2025, the UK tech and venture ecosystem looks set for a year of recalibration, reflection, and—dare we hope—recovery.

After a few years resembling a particularly bumpy ride on the Northern line, there’s cautious optimism mixed with a healthy dollop of skepticism.

With AI still causing quite the ruckus, funding dynamics evolving, and ethical considerations stepping firmly into the limelight, the next year promises to be anything but dull.

The Return of Balance in Venture Capital

2024 saw artificial intelligence hogging the spotlight like a particularly chatty guest at a dinner party. Wayve’s $1 billion Series C raise turned heads, but as Louis Dussart of RTP Global suggests, 2025 may bring a broader spread of interest. Climate tech, fintech, and applied AI might finally get a word in edgeways. Think less "AI world domination" and more "a well-curated buffet of innovation."

With the ghosts of unsustainable "growth-at-all-costs" strategies still haunting the ecosystem, many founders are now tightening their belts and sharpening their pencils. The startups that focus on sustainable business models and genuinely useful products (rather than the latest shiny thing) will be the ones to watch.

The advice for founders? Keep your eyes on your prize—your value proposition—and don’t be tempted to inflate your ambitions just because the bloke next door raised a tidy Series B. Slow and steady wins the race, as they say, especially when the race is uphill.

Scaling Isn’t Getting Easier

If scaling a startup in the UK were a sport, it would be something between an Ironman and extreme ironing: games of attrition. For 2025, that difficulty level is unlikely to drop. Will Clark of Mercia Ventures warns that raising follow-on funding will be a particular pickle, especially for capital-hungry ventures still some way from profitability. The trick? Start conversations with investors early and keep them sweet with regular updates.

Geopolitics will also play its part. With a certain orange-tinted figure looming large in US politics again, UK startups aiming to cross the pond may need to navigate new tariffs or policy shifts. Meanwhile, reshoring operations—thanks to global trade tensions—could offer opportunities, but don’t expect it to come cheap or easy.

AI: The Elephant in Every Room

AI isn’t leaving the party anytime soon, but 2025 could be the year it stops trying to do everything and starts specialising. Hussein Kanji of Hoxton Ventures predicts the next big wins will come from companies with unique datasets and focused applications. Think techbio startups using AI to crack drug discovery—where data meets biology in a way that even skeptical VCs might struggle to resist.

Meanwhile, the EU AI Act looms large, influencing not just Europe but global companies eager to stay on the right side of compliance. For UK businesses, grappling with both EU and diverging UK policies will feel a bit like trying to learn two new dances simultaneously. One step forward, one step sideways, and a lot of toes stepped on in the process.

Ethics and Public Engagement: More than a Box-Tick

The ethical use of AI and tech is no longer just a talking point at conferences or fodder for earnest op-eds. It’s becoming the frontline issue for public trust. Cathy Baxter of Salesforce emphasises the importance of transparency and human oversight, particularly as AI becomes ever more ingrained in everyday life.

And let’s face it—2025 might finally be the year the public starts to care. From kids doing their homework on ChatGPT (or letting it do it for them) to fears of job-stealing robots, the implications of AI are hitting closer to home. Ada Lovelace Institute’s Guy Marcus argues that we need to drag the AI debate out of conference halls and into the local pub, where the real opinions fly.

Priorities for 2025

So, what’s on the to-do list for UK venture in the next 12 months? Here’s a quick rundown:

1. Efficiency Is King: With funding harder to come by, startups need to squeeze the most out of every penny. Time to get lean, mean, and laser-focused.

2. Ethics Over Egos: Ensure your AI or tech product doesn’t just work but works fairly and responsibly. The public and regulators aren’t in the mood for cutting corners.

3. Resilience in Scaling: Founders, treat your investors like houseplants—regular check-ins and the right amount of nurturing will keep them thriving. Times are lean, stay in touch.

4. Public Engagement: Make tech accessible and understandable. If your mum wouldn’t know what your AI product does, you’ve got work to do.

5. Talent and Team Building: Automation may be replacing some roles, but retraining and reskilling your workforce is key to staying competitive and humane.

Buckle Up for a Bumpy Year

The year ahead promises challenges aplenty—funding, ethics, governance—but also offers a chance to reset and refocus.

Founders who embrace clarity, collaboration, and a dash of humility will find themselves better equipped to navigate the twists and turns. And with any luck, we’ll come out of 2025 with an ecosystem that’s not just bigger but better.

In other words - keep calm and carry on.