Making Sense Inside Tech Stars 2025: From IPOs to defense tech
Oct 17, 2025
Rosh Wijayarathna and David Bauer of J.P. Morgan delve into the booming venture capital landscape, highlighting AI's significant market share and defense tech's rapid expansion. Rosh shares insights on the importance of patient investor relationships and evolving fundraising dynamics. David discusses the active IPO pipeline and what public markets seek: strong growth and healthy margins. Both emphasize the growing need for companies to integrate AI into their narratives while navigating strategic M&A opportunities and private equity interests.
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AI Drives An Interconnected Infrastructure Boom
- Rosh Wijayarathna: AI dominates VC with ~40% of European venture funding and strong downstream effects.
- He links AI to data centers, GPUs, energy (including small modular reactors), and quantum computing as an interdependent stack.
Defense Tech Is Rapidly Scaling In Europe
- Rosh Wijayarathna: Defense tech is accelerating from ~0.5-1% to 4-5% of VC, reaching 10% in Germany.
- He attributes this to increased government spending and demand for agile, fast-scaling tech suppliers like drones.
Pick Investors As Long-Term Partners
- Rosh Wijayarathna: Know your investor as a long-term partner and ensure alignment on vision and patience.
- Choose investors who buy into your mission, not only those fixated on near-term liquidity.