IVCA Feature: Venture Capital & Private Equity in the Time of the Tariffs
May 14, 2025
The up and down effects on the economy that President Trump’s tariffs have wrought has been in the financial debate since his April 2nd announcement of their implementation. In the days before that debate, there were many theoretical opinions on what would occur, but once the policies were actually affecting the Venture Capital and Private Equity industries, those opinions and actualities became front and center. The financial press expresses their thoughts.
Fortune.com, ’Trump’s Tariffs Dash Hopes of VC Comeback in 2025’
The turbulence in global equity markets has hit VC as several major tech startups have postponed their IPO plans in response to the sharp decline in tech stock valuations. The disruption is putting even more pressure on an industry already dealing with a slowdown in both tech IPOs and M&A activity.
SPGlobal.com, ’Tariffs Add New Hurdle to Private Equity’s Exit Challenge’
Private Equity firms positioning portfolio companies for sale need to quickly gain an in-depth understanding of those assets’ exposure to tariffs, said Kevin Desai, who advises private equity firms as PwC’s sector leader for the industry. Particularly for portfolio companies with complicated supply chains, uncertainty concerning tariff impacts threatens to extend sale processes and reduce the sellers’ return on investment.
Crunchbase.com, ’Tariffs And The Venture Value Chain: A Blip Or Long-Term?’
Tariff uncertainty is impacting the entire venture capital value chain. One report calls it the “biggest changes to the world trading system since the General Agreement on Tariffs and Trade came into effect in 1947.” A wave of tariffs and trade restrictions is reshaping alliances and redrawing global commerce. As governments rethink partnerships, startups must face a new reality.
READ MORE: https://news.crunchbase.com/policy-regulation/tariffs-venture-value-chain-ipo-ma-rohit-yadov/
CLAConnect.com, ’The Impact of Trump’s Tariffs on Private Equity Firms, Portfolio Companies’
While tariff policy changes present challenges, they also offer opportunities for strategic acquisitions and operational improvements. Despite this uncertainty, certain sectors like technology, business services, and health care have shown resilience, continuing to drive deal flow. Distressed acquisitions and secondaries are emerging as strategic opportunities, allowing PE firms to boost operations and maintain profitability amid tariff uncertainties.
PODCAST, VCPete, ’How Trump’s Tariffs Shake Up Venture Capital and Tech IPOs in 2025’
[Pete breaks down] how Trump’s new tariffs are shaking up the Venture Capital world, stock markets, and even global tech investments. Do you think these tariffs will help level the playing field or just cause more problems for startups and investors?
LISTEN (11 MIinutes): https://youtu.be/nat6u4wvFxE?si=rqFgIDSO6V8cfRhj
PODCAST, Spotlight: A PEI Podcast, ’How Tariff Turbulence is Hitting Private Markets’
For the Private Equity Industry, the trade war adds unwelcome distractions to an industry already grappling with challenges including lower distributions, higher interest rates, a difficult fundraising environment, consolidation and fundamental changes.
LISTEN (25 MIinutes): Apple … https://podcasts.apple.com/gb/podcast/how-tariff-turbulence-is-hitting-private-markets/id1450286145?i=1000703859558 Website … https://www.privateequityinternational.com/spotlight-podcast/
CNN.com, ’Inflation Slowed More Than Expected in April, Despite Tariff-Related Price Pressures Building’
U.S. inflation slowed to its lowest rate in more than four years, an unexpected and welcome development at a time when President Donald Trump’s dramatically escalated tariffs are expected to cause prices to rise.
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