LeadershipVisionfor2025

Top3Strategic

Prioritiesfor

StartupTechCEOs

Introduction

In2025,startuptechCEOsmustnavigateadynamiclandscapebyfocusingoncostmanagementandstrategicAIinvestmentstodriveproductivityandefficiency.Agility,deepindustry

knowledgeandacommitmenttosecurityarecrucialas

buyersdemandriskassurance.GenAIisnowexpected,notadifferentiator,promptingincreasedcybersecurityspendingandpolicydevelopmentforsecureadoption.

Tomeetthesechallenges,startuptechCEOsshould:

?UseGenAItostreamlineoperations,customerinteractionsandproductivity

?Establishtrustwithbuyersthroughsimplifiedriskmanagement

?Positionthemselvesasvisionarypartners

Usetheseinsightstobalanceinnovationurgencywithbuyertrust,andachieveyourgoalsin2025andbeyond.

WhatarethemajortrendsaffectingstartuptechCEOs?

WhatarestartuptechCEOs’topprioritiesfortheyearahead?

WhatactionsdostartuptechCEOsandtheirteamsneedtotaketosucceed?

Keyquestionsaddressed

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TheFundamentalsof2025

StartuptechCEOsmustprioritizeagilityanddeepindustryknowledge,andfocusonsecurity,trustandoperationalresiliencetoguidebuyersthroughpurchase

Buyer-focusonriskassurancefromstartups

GenAIisan

expectation,nota

differentiator

Buyerslooking

tovendorsfor

helpwithbuying

solutions

Source:Gartner

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FundingandTechSpendonanUpwardTrajectory

Trajectoryofspending

2023

2024

2025expectationsandsentiment

14.9%a

10.7%a

VCsprioritizeearly-stage

32%a

2.5%a

fundinginGenAIstartupsand“required”startupstointegrateAIintobusinessand/orproductstrategiestoattractAI-specificfunds.

?Expectedtoincreaseat3.8%(justbelow2024increase)

?India(followedbyVietnamandMexico)expectedtoseehighestrateof

growthglobally

Softwarespendinggrowth1

11.5%

12.6%

ITservicesspendinggrowth1

4.9%

71%

VC-M&Aexitsdealvalue2

30%

58%

FundingfromVCinvestors3

41.9%

40.3%

Laborcosts4

4.5%

3.9%

Sources:

1ITSpendingforSoftwareandServices—GartnerMarketDatabook,2Q24Update(G00808569)

2VC-M&AExitsDealValue—GlobalM&AMonitorforTechCEOs,4Q23:SluggishWithaSilverLining(G00806117)

3FundingFromInvestors—“GlobalVentureFundingInQ32023FallsAgainDespiteLate-StageReboundLedByHugeAIDeals”(

/venture/global-venture-funding-instacart-klaviyo-q3-2023/

)

4LaborCosts—“W”(reflectshigherofU.S.SalariedEmployeeExemptandU.K.ManagementSalariedeachyear),2023—

/media/CDN/dist/CDN2/documents/pdf/resources/research/

SBS2023-24_TopLevelData_Participants.pdf

,2024/2025EST—

/media/CDN/dist/CDN2/documents/pdf/resources/sbs/SBS2024-2025_TopLevelData_Participants.pdf

aIndicatesforecastasofclose2Q24

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AIIsTopofMindforEnterpriseBuyers’Boards

BuyerboardsandITdecisionmakersareaddressingGenAIrisksby

acceleratingcybersecurityspending,establishingpoliciesandinitiating

pilotprogramstoensuresecureandscalableadoption.

BoardsdiscusstoptechnologiesleadingwithAI

0%25%50%

n=285,nonexecutiveboardofdirectors

Source:BoardGraph:BoardsDiscussTopTechnologiesLeadingWithAI—

/

document-reader/document/5717251?ref=solrImgSearch&refval=437812988

AI/MLSecurity/riskmanagement

48%

38%

Softwareenhancement(includingERP)Digitaltransformation DataandanalyticsAutomation

Cloud

Accounting/finance-relatedtechnologiesCustomercentricity

Digitalproducts,servicesorsolutions

19%

18%

15%

14%

29%

11%

11%

8%

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GenAI—anexpectation,notadifferentiator

GenAIisnowintegraltobusinessstrategy,productsandoperationalefficiency.

By2026,GenAIwillbeanecessity.Venture

fundingwillhingeonstartupsusingAI.GenAI-assistedsoftwareengineeringandproduct

developmentwillhaveatleasta50%reductionintimetomarket.

By2028,agenticAIwillbemainstream.Thirty-

threepercentofenterprisesoftwareapplicationswillincludeagenticAI,upfromlessthan1%in

2024.AIagentmachinecustomerswillreplace20%oftheinteractionsathuman-readable

digitalstorefronts.

Explore

TheGartnerHypeCycle?forEmerging

Technologies,2025

Buyersneedvendors’helpinmakingpurchasedecisions

Technologyadoptionisincreasinglydriven

bybuyers’risktolerance,withearlyadopters

seekinginnovationandvendorsevolvinginto

trustedadvisorsforcautiousmainstreambuyersbyprovidingdeepindustryexpertise.

Buyerswhoareinnovatorsandearlyadoptersarewillingtoexperimentandacceptmore

riskwhenintegratingnewsolutionsversus

mainstreambuyerswhoexpecttrackrecordsofprovensolutions.

3TrendsDefiningthe2025LandscapeforStartupTechCEOs

Buyersdemandthatstartupsprovidesecurity,complianceandoperationalresilience

Enterprisebuyersincreasinglyscrutinizestartupsforriskfactorslikedataprivacy,AIethics,data

security,regulatorycomplianceandoperationalresiliencebeforepartnering.

ConcernsaboutAIriskswillcontinueinthenexttwoyears,particularlyininformationintegrity

(41%)anddataprivacyandsecurity(37%)andotherregulatorylandscapeconsiderations.

Buyerswhoevaluatestartupswithoutindustrystandardcompliancecertificationsduringthepurchaseprocessusearigorousquestionnaire(SIGAnalysis)toaddressbusinessriskposture.

Source:

SRS—Q4PulseReport,GlobalFundraisingMonitor4Q24

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01

GettoPMFFaster

WithGenAIto

ShortentheTime

BetweenMilestones

02

03

3PrioritiesandActionsforChiefProductOfficers

PRIORITY

ACTION

?AutomatecustomerinteractionswithGenAItostreamlineworkflowsandsavetimeforstrategicproductdevelopment.

?UseAI-driveninsightstoanalyzefeedback,identifytrendsandrefinefeaturesquickly.

?Speedupprototypingandtestingbygeneratinganditeratingproductvariationsfaster.

BalanceUrgency

ofInnovationWith

BuildingBuyerTrust

PRIORITY

?Prioritizecompliancefromthestartbyusingitasatrust-buildingdifferentiatorandaligningcertificationswithgrowthgoals.

?Treatcomplianceasanongoingprocessbydedicatingresources,utilizingthird-partyexpertiseandpromotingacultureofaccountability.

?Incorporateregulatoryrequirementsintoproductdesignearlytoavoidexpensivereworkandreducetechnicaldebt.

EstablishBusinessCredibilitytoWinBuyerConfidence

PRIORITY

?Demonstrateindustryexpertiseandthoughtleadershipbyidentifyingtrends,sharingin-depthverticalknowledgeandinsightsspecifictoyourfield.

?Establishcredibilitythroughearlycustomersuccesses,industryrecognitionandawards,andstrongpartnerships.

?Exhibitfinancialdisciplineandoperationalresiliencetoassurebuyersoflong-termstabilityandvalue.

UseGenAISolutionstoStreamlineOperations,CustomerInteractionsandProductivity

ACTIONEstablishTrustWith

BuyersandConserveCashWithSimplifiedRiskManagement

ACTIONPositionYourselfasa

Long-Term,VisionaryStrategicPartnerto

DeliverValueBeyondProducts

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01

PRIORITY

GettoPMFFasterWithGenAItoShortentheTimeBetweenMilestones

SuccessfullyintegratingAI

ThestartupcurvetoPMFwhenusingGenAI

requiresmaintaining

organizationalvisionand

Initial

enthusiasm

Scale

productstability,whileensuringthatscalable,business-

Scale

Realitysetsin

Startsworking

Testing,addingandscaling

Startupideation

focusedinnovationenhancesuserexperienceandproductconsistencyintheecosystem.

●

Growth

PMF

Identifytoolset(s)

Decisionto

incorporate

GenAI

PMF

andpivoting

Experimenting

Startsworking

Rockbottom

PMFnoGenAI

PMFwithGenAI

Time

Source:Gartner

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02

BalanceUrgencyofInnovationWithBuildingBuyerTrust

Ensureseamlessintegrationof

innovationswithorganizationalgoalsthroughastructured

approach,whilefocusingondeliveringsubstantialvaluetodrivemarketadoption.

Forbuyers,trustworthinessisapreferredcharacteristicfordifferentiation

Sumoftop3

Industryknowledge38%

PRIORITY

Trustworthiness38%

34%33%33%

SkillsofpersonnelsupportingimplementationDemonstratedunderstandingofoursituation

Termsandpricing

29%

28%24%

24%

ServiceofferinginnovationsWillingnesstocollaboratewithusExistingrelationship

Recommendedproviderfromourproductvendor

22%

21%18%

Lowestrisk

Socialresponsibilitypoliciesandpractices

Culturalfit

%20%40%

n=1,106;allrespondents,mayvarybytechnologycategory

Source:B2BTechBuyingBasics,

/document-reader/document/4012565?ref=solrAll&refval=443390940

Note:Sumoftoptierranks

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03

PRIORITY

EstablishBusinessCredibilitytoWinBuyerConfidence

Replacingproofsofconcept

POVwinagreementsdrivesalesthroughbusinessvaluedemonstration

withproofsofvalueand

1

transformingthepitchdeckintoastrategicbuyerdeckshowcaseslong-termvalue,measurable

Overviewandscope

impactandcredibilitysupportedbyhigh-value,referenceable

customers.

4

Pricingandlegalconsiderations

Engagementprerequisites

POVwin

agreement

2

Milestones/resultsandcommunicationplan

3

Source:Gartner

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01

ACTION

UseGenAISolutionstoStreamlineOperations,CustomerInteractionsandProductivity

1

Focusonadaptiveproduct

developmentandcost

management

UseAIforagiledevelopmentanddata-drivendecisionstocreateanadaptiveproduct

roadmapandavoidtheDeathValleyCurve.

Securereferenceable

customers

UseAItoprovidegreater

customerservicetogainearlyadvocatesandsupportfunding.

Establishholisticoperations

Automatetasksforefficiency:

InstallAIproductivitytoolsandimplementdatastrategy.

2

3

StrategicallycombinedGenAI/agenticAIsolutions

IncreasedproductivitywithstrategicallycombinedGenAIsolutions

CompanyaddsGenAItoolsto

buildoninitialsuccess

Companyadds

additionalGenAItoolsforquickwinusecases

Decreasedproductivity

withtoomanyincompatibleGenAIsolutions

TechstackexpansionusingGenAI

Source:Gartner

Inflectionpoint:CompanydecidestoincorporateGenAI

InitialsuccesswithGenAI

Businessproductivity

Leadership

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02

ACTION

EstablishTrustWithBuyersandConserveCashWithSimplifiedRiskManagement

1

Avoidtechnicaldebt

Buildwithcomplianceinmindtoavoidcostlyreworkand

technicaldebt.

Empowercustomers

Empoweruserswithprivacy

settingsanddatatransparency

controlstobuildtrustloyalty.

Buildscalableoperational

processes

Startbuildingwithongoing

complianceprocessesin

mindandleveragethird-partycompliancevendorstostay

onbudget.

Nearly50%ofbuyersstatethatsecurityrisk(includingdataprivacy)isalwaysformallyassessedduringthepurchaseprocess.

Security,includingdataprivacy

(n=1,533)

Financialviability

(n=1,530)

Legalandregulatorycompliance

(n=1,531)

Providerstrategy

(n=1,531)

Operationaldependence

(n=1,530)

Involvementofparties/subcontractors

(n=1,531)

Geographicconsiderations

(n=1,524)

Environmental/ESGfactors

(n=1,526)

0%25%50%

nvaries;allB2Bleaders,excluding“notsure”

Source:2024GartnerEnd-UserBuyingBehaviorSurvey

2%–12%38%

1%–10%42%

1%–11%43%

2%–11%41%

2%–13%42%

2%–13%46%

3%–14%43%

3%–14%44%

49%

2

Notassessedatall

46%

45%

45%

44%

Consideredbutnotformally

assessed

and

Formallyassessedasapartofthe

purchaseprocess

3

40%

40%

39%

Alwaysformally

assessedasapartofthepurchase

process

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03

ACTION

PositionYourselfasaLong-Term,VisionaryStrategicPartnertoDeliverValueBeyondProducts

Keyactionitemschecklist

Simplifytheonboarding

processwithreducedrequiredinformationandself-service

options.

Optimizeuserexperience

forwebpresenceandproduct(UI/UX/VUI).

Setupatransparentpricingstructurewithasimplified

check-outflow.

Buildtrustandcredibilitywithindustry-standardcompliancecertificationsandprocesses.

Developawhite-glovesupportprocessforreferenceable

clients.

Reassurepotentialbuyerswithsocialproofbyincorporatingreviews,pressmentions,use

cases,clientreferencesandtestimonials.

1Focusonproductscalability

Establishproofofvalueorpaidpilotswithdefinedobjectivesandthetimelinefor

anoutcometoshowtheeaseofproductusage,integrationandonboarding,anddemonstratescalingability.

2Createcustomeradvocacy

Providewhite-gloveservicetoyourfirstkeyreferenceablecustomerssotheybecome

businessadvocatesforfundraisingandhelpattractyournextsetofcustomers.

3Establishoperationalviabilitywithdecisionmaker

FocusonC-Levelmeetingsandtheir

requestsfordocumentationcovering

funding,proofoflong-termviability,

integrationandsupport,andcomplianceanddatahandling,showingreal

buyingintent.

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RecommendedActions

In2025,startuptechCEOsmust:

Capitalizeonnewtechnologysolutions(i.e.,AI)toaccelerateproductmarketfit

Embedtrustandresilienceintotheirbusinessandproductstrategytoaddressbuyers’riskpostureandbeviewedastrusted,long-termpartners

Establishthemselvesasthoughtleadersandvaluedpartnerstohelpguidebuyersthroughthedecision-makingprocess

14

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