KPMG Survey: AI and Emerging Technologies Dominate Private Market Investment Amid Market Uncertainty

While evolving market conditions are shaping investment decisions in high-growth pre-IPO and private companies, financial performance remains key

Governance and cybersecurity are increasingly critical in investment strategies

Investment priorities differ among investors with private equity examining profitability, venture capitalists favoring unique value propositions and asset managers prizing technological innovation

New York, New York--(Newsfile Corp. - April 17, 2025) -  In a rapidly changing market landscape, private market investors are transforming their investment strategies and priorities while navigating new risks and opportunities driven by technological innovations, according to KPMG Private Markets Pulse: Private market investment priorities, a new study released by KPMG LLP, the US audit, tax and advisory firm.

KPMG US surveyed more than 300 US private equity (PE), asset management, venture capital (VC) and family office investors across a variety of industries and sectors to capture investor sentiment around innovation cycles, new growth fronts and evolving definitions of "value" in the private markets.

"Private market investors are prioritizing a combination of financial performance metrics and scalability potential when assessing investment opportunities," said Tarek Ebeid, KPMG Private Leader and Partner in Charge - Northern California Audit Practice, KPMG US. "They remain cautious about risks, placing increasing value on comprehensive reporting and governance measures. Founders seeking funding should articulate their company's strengths, future potential and comprehensive risk management strategies with clarity and transparency. This approach will help attract investment, maintain investor confidence and foster trust."

Investors are increasingly prioritizing companies that demonstrate a robust track record of innovation and a proactive approach to adopting emerging technologies underscoring the importance of staying ahead of technological curves to maintain competitive advantage and capitalize on new market opportunities. They also expect AI to transform nearly every facet of portfolio companies within the next year, with the greatest impact on data analytics and business intelligence (52%), cybersecurity (52%) and finance and accounting (50%).