A Promising Year for Tech Investment
Investors are looking at 2025 with bright optimism. After two years of a cautious attitude marked by a feeling of scarcity across companies, markets have begun to respond positively from a financial perspective, allocating capital wisely—especially in the tech arena.
According to Forrester, the digital economy will expand at a 6.9% CAGR from 2023 to 2028, with 91% of global technology decision-makers planning to boost tech spending, with more than half anticipating growth exceeding 5%, outpacing inflation. It would be expected that organizations and funds alike were eager to resume their temporarily paused investment activities to see them start delivering returns.
In this scenario, companies will need to shift from their sole focus on cost-cutting and prepare themselves to drive expansion and value creation sagely. Here’s our take on Smart Tech Investment for the year to come.
Key Takeaways to Smartly Grow Your Business in 2025
Cautiousness is still in sight but steadily giving space to higher expectations of value creation next year. Today high-performance tech is a must for businesses that want to improve their offering or reach new markets to ultimately hit higher valuations. If you’re looking for the best investment course, here are some recommendations based on our extensive experience advising both PEs and companies on the road of maximum impact.
Start with a Technological Assessment
The first step to investing wisely in innovation is measuring the tech maturity of company processes, products, and services. Beyond trends and general advice, each business case is unique—and that is why this initial assessment is critical to setting priorities and defining reasonable business goals toward value maximization.
For a long time, we have been helping businesses understand their technical growth stage and needs by carefully analyzing data points related to security levels, product performance capacity, maturity of AI implementation, and state of Data Management, among other top areas of interest. If you are a Private Equity professional in the search of a roadmap to evaluate tech infrastructures for scalable investments, download our “Charting New Business Horizons with Tech Due Diligence” free ebook.
Align Technical Goals with Business Objectives
Once the assessment is completed, it’s time to define a proper course of action that pairs technical goals with business objectives—and bring all stakeholders on board. If you want to create true value from a digital transformation process, it’s crucial for all participants to keep business goals in mind in every task (no matter how small it seems) and in every step of the way.
Our core value “one team, one mission” refers exactly to that. When partnering with a client, our priority is to focus on integration—we collaborate committed to the same north. Every person involved, from developers to C-level or managers, is widely aware of the core intent: streamlined workflows, higher efficiency, and an improved offering of products and services that ultimately lead to a higher valuation.
Test Your Ideas (Fast and Wisely)
After assessing needs and defining objectives, it’s essential to validate your business ideas in a real-life scenario. If you want to accelerate market-fit confirmation for your product, sharp-witted testing is the answer.
The goal of testing is to corroborate whether your product truly works in the market, using minimal resources while obtaining clear and actionable insights to fine-tune the product before scaling it up.
As strategic partners, we have extensive know-how and experience to help you design and deploy tech solutions with the right balance between product robustness and time-to-market preciseness to get tangible ROI as quickly as possible.
Fewer Trends, More Value: Top Technologies to Invest in 2025
At this point, it may seem obvious that investing in technology is the key to maximizing profitability. The bad news? There’s no magic formula that suits all companies—it heavily depends on the growth stage, budget, type of market, industry, and timeframes.
That’s why, when guiding companies on how to adopt, integrate, and optimize new and existing technologies, we advise against following market trends merely for the sake of it; instead, focus on understanding how they can enhance your business value today.
Having said that, here’s a non-exhaustive list of domains where tech investment would be critical in 2025. Don’t forget—To build a clear investment strategy with sharply defined goals and KPIs, and make some smart decision making, you’ll need to understand how these areas of expertise can truly impact your business.
- Artificial Intelligence
Integrating AI into your company’s operations is about enhancing processes, not replacing people. AI serves as a powerful tool to drive automation and optimize workflows across various functions. A prime example is AI-enabled development, where intelligent tools streamline coding, automate testing, and improve software quality with exceptional speed and accuracy. Beyond development, AI empowers teams with predictive analytics, refines algorithms, and personalizes workflows, resulting in smarter decision-making and increased productivity. As we move into 2025, investing in AI technologies will become increasingly crucial for companies seeking to boost cost-efficiency, improve scalability, and maintain a competitive edge in the marketplace.
- Cloud Infrastructure
Investing in advancements in cloud technologies, like edge computing and containerization, allows efficient and on-demand scalability for businesses across all industries. Enabling your organization to handle growing data volumes, deliver real-time processing, and support the rapid deployment of AI and machine learning applications maintains agility and optimizes costs.
- Data Management
Is your company sitting on piles of data assets generated by IoT devices, AI, and digital interactions that are not being monetized? Investing in effective, scalable, and secure data management solutions—automated data governance, advanced data lakes, and cloud-based data platforms—will help your company make data-driven decisions, comply with increasing regulations, and reduce operational complexity.
- Cybersecurity
As breaches, ransomware, and other cyberattacks grow more sophisticated and frequent, cybersecurity remains a given investment for all companies. With the rise of remote activities and interconnected devices, allocating capital to protecting sensitive information is key to safeguarding both your digital assets and your customer’s trust in the year ahead.
- Raise Your Business Value in 2025
Worldwide, hopes are high for the near future of tech investment. According to Gartner, global tech spending is projected to reach $5.74 trillion in 2025, which represents a substantial increase of 9.3% from 2024. More companies investing in technology means a risk for those that choose not to.
More importantly, M&A activity is expected to accelerate next year thanks to “accommodative cost of capital, solid ratings headroom, and the possibility of looser regulation”. You’ve been notified—a wave of investments is on its way, and it’s essential to be prepared for the ride.
If you’re planning to invest in tech next year, count on us as your seasoned partner to assess, plan, and deploy a smart investment strategy. Give us a shout, and let’s multiply your business value by the power of technology.