Whats up and welcome to The GTMnow Publication – the media model of VC agency, GTMfund. Construct, scale and make investments with the most effective minds in tech.
“What are you seeing throughout the early-stage enterprise market?” That is the query that we get requested on a regular basis. If we zoom out and take a look at the general state of enterprise, the early-stage market is heating up once more. We’re seeing 9 vital tendencies:
Seed valuations are pushing all-time highs
Submit-money medians are hovering round $18–$20M. There’s actual demand for top-tier founding groups, particularly in AI. In keeping with PitchBook information, greater than 60% of the biggest seed rounds in H1 2025 have been AI-related, signalling concentrated investor urge for food round AI-native startups.
And founders are elevating extra, earlier.
It’s a flight to high quality
Fewer offers are getting achieved, however the ones which are? They’re commanding premium phrases. In case you’re constructing one thing actual, the capital is there. In case you’re not, good luck. Enterprise has all the time been a sport of haves and have-nots, and that hole has by no means felt wider than right now.
Carta’s Q2 2025 information exhibits new financings down about 13% year-over-year, but seed valuations hit $15M–$17M. Fewer offers, increased costs. The market is heating up for top-tier founders even because it cools for everybody else.
Collection A is more durable than ever
Regardless of excessive demand for Seed rounds, commencement charges from seed to A are down considerably. It’s not sufficient to lift a powerful seed — should you’re not exhibiting breakout momentum, your subsequent spherical might be a grind. It is a hurdle most founders underestimate, and one thing we prep our Pre-Seed and Seed founders on from day one.
M&A is again
This autumn 2024 via to now has been probably the most lively M&A interval we’ve seen in years. Large Tech is purchasing once more. You’ll be able to really feel it within the headlines and the underlying numbers.
Good to see GTMfund firms getting nice affords, reminiscent of OfferFit being acquired by Braze for $325M.
Secondary markets are booming
Over $120B is projected in secondary capital this yr alone. That will mark the most important classic in secondary capital in historical past, and that quantity continues to develop. That’s creating actual liquidity choices for early buyers and staff. You not have to attend for an IPO or exit to get liquidity in your place.
Linear offered liquidity throughout its first tender supply by inviting present and former staff to promote a portion of their vested choices throughout its Collection C financing.
Hightouch launched a young supply for workers (~$30M in frequent inventory) at a $1.3B valuation.
Deel did a $300M secondary share sale (permitting early buyers, probably staff) as a part of a transaction.
Exits are getting greater
The 99th percentile VC exit is now over $10B. A decade in the past, it was $1.4B. Corporations are staying non-public longer, compounding extra, and exiting at a lot increased values.
The sport has modified. Capital is there, however just for the most effective. The outcomes are greater, however the bar is increased than ever earlier than.
Metrics alone don’t get you funded
Gone are the times of spreadsheet investing. You could possibly be rising triple-triple-double with best-in-class NRR – and nonetheless hear “no” in case your story doesn’t land.
The unimaginable alternative of AI cuts each methods. It additionally makes buyers nervous. Classes which are booming right now may very well be all however eradicated tomorrow with a brand new mannequin launch, change in AI structure, or quickly shifting buyer preferences. If your organization narrative traces up with the VC thesis, you’ll have demand. In case you’re constructing one thing really non-consensus, it’s good to discover that singular investor who falls in love along with your narrative for the long run. It’s a more durable path, however traditionally, a really fruitful one.
If software program is consuming the world, AI would possibly devour it
When the transition to cloud started, the worldwide software program market was $350B. Immediately, the cloud market alone is over $400B. Actually transformational applied sciences are likely to exceed the scale of the markets they’re attacking. AI is not any totally different right here.
The place AI might be totally different is the $10T a yr international providers market. AI is promoting greater than software program: it’s promoting outcomes, headcount, and workflows. If AI is consuming into each the worldwide software program and providers market right now, what does that appear to be 5 years from now? 10 years from now? Buckle up.
Distribution is the ultimate remaining moat
As know-how turns into simpler and simpler to construct, distribution is the ultimate remaining moat. What separates winners right now? Go-to-market technique and execution is the working mannequin that builds and maintains that moat. Founders want GTM assist sooner than ever.
Tag @GTMnow so we will see your takeaways and assist amplify them.
Extra in your eyeballs
The Shift: Static Software program vs. Dwelling AI Programs. On the planet of conventional software program, merchandise have been constructed on determinism. AI breaks this assumption. AI merchandise now look extra like dwelling techniques vs static ones.
The U.S. authorities simply made it more durable and dearer to get H-1B visas, creating short-term uncertainty for firms that rent worldwide expertise. However demand for high international expertise isn’t going away — employers are already shifting to different visa sorts.
Extra in your eardrums
GTM 164: twenty eighth at Stripe → Billions: Cristina Cordova’s GTM Playbook (Linear, Notion)
Get a sneak preview right here. For the complete factor, pay attention on Apple, Spotify, YouTube or wherever you get your podcasts by looking out “The GTMnow Podcast.”
LeanScale GTM Podcast: Keep away from These Founder Crimson Flags: A VC’s Trustworthy Perspective
Sophie Buonassisi (SVP of GTMfund/GTMnow) on what enterprise capitalists actually search for when investing in startups.
Startups to observe
Centari – raised $14M to construct the way forward for Deal Intelligence. Suppose M&A, financings, partnerships — offers the place billions are on the road and velocity and precision matter. Generic AI instruments weren’t constructed for the authorized complexity or threat tolerance these transactions require. That’s the place Centari is available in.
Pocus – introduced its subsequent chapter: transferring past sign aggregation to true decision-making intelligence. With the brand new Relevance Agent™ and Clever Inbox, Pocus offers reps clear subsequent steps (who to contact, what to say, and when to behave), turning information overload into trusted steerage that drives income.
Hottest GTM jobs of the week
- Demand Advertising Senior Supervisor at Dice (Hybrid – New York)
- Head of Product Advertising at Patch (Hybrid – San Francisco)
- Sr. Product Supervisor, AI Doc Administration at Vanta (Distant – US)
- Coaching & Schooling Specialist at Vividly (Distant – US)
- VP of Technical Providers at CaptivateIQ (Hybrid – Austin / Menlo; Distant – Raleigh / Nashville / Toronto)
See extra high GTM jobs on the GTMfund Job Board.
In case you’re seeking to scale your gross sales and advertising and marketing groups with high expertise, we couldn’t suggest our accomplice Pursuit extra. We work intently collectively to have the ability to present the highest go-to-market expertise for firms on a non-retainer foundation.
GTM trade occasions
Upcoming occasions you gained’t need to miss:
- Dreamforce: October 14-16, 2025 (San Francisco, CA)
- GTMfund Dinner (non-public registration): October 22, 2025 (Austin, TX)
- GTMfund Dinner (non-public registration): November 18, 2025 (Toronto, ON)
- GTMfund Dinner (non-public registration): November 19, 2025 (New York, NY)
- GTM x Founder Occasion (non-public registration): November 20, 2025 (New York, NY) – should you’re an AI-focused founder in NYC, hit reply to get the small print
- Above the Fold (for entrepreneurs): February Sep 11, 2025 (Fort Lauderdale, FL)
- Spryng (for entrepreneurs): March 24-26, 2025 (Austin, TX)
GTM neighborhood love
Some GTMnow neighborhood (founder, operator, investor) love to shut it out – we respect you.
