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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
LeadershipVisionfor2025
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TheFundamentalsof2025
StartuptechCEOsmustprioritizeagilityanddeepindustryknowledge,andfocusonsecurity,trustandoperationalresiliencetoguidebuyersthroughpurchase
Buyer-focusonriskassurancefromstartups
GenAIisan
expectation,nota
differentiator
Buyerslooking
tovendorsfor
helpwithbuying
solutions
Source:Gartner
LeadershipVisionfor2025
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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
LeadershipVisionfor2025
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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%
LeadershipVisionfor2025
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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
LeadershipVisionfor2025
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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
LeadershipVisionfor2025
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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
LeadershipVisionfor2025
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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
LeadershipVisionfor2025
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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
Visionfor2025
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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
LeadershipVision
for2025
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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.
LeadershipVisionfor2025
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RecommendedActions
In2025,startuptechCEOsmust:
Capitalizeonnewtechnologysolutions(i.e.,AI)toaccelerateproductmarketfit
Embedtrustandresilienceintotheirbusinessandproductstrategytoaddressbuyers’riskpostureandbeviewedastrusted,long-termpartners
Establishthemselvesasthoughtleadersandvaluedpartnerstohelpguidebuyersthroughthedecision-makingprocess
14
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