The Investors Perspective: Strategies and Insights for Success in Tech M&A

Where are technology investors putting their money? It depends—circumstances vary widely case by case. Yet despite the differences, many stories share common ground and valuable lessons. Investors from around the world shared their perspectives during a roundtable at the Growth and Exit Strategies (GXS) conference, hosted by the World Financial Symposiums (WFS). Here are some of their insights.

What Companies and Trends Are Getting Tech Investors Excited in 2025?

According to Sarah Young, Managing Partner and Founder of Canadian venture capital (VC) firm Sandpiper Ventures, the firm focuses on companies that solve complex systemic problems. For example, Sandpiper invested in Protexxa, a cybersecurity, AI-enabled startup with a human-centered approach. Young, a member of the Investors Panel at the GXS conference held on July 7, 2025, emphasized that many challenges within cybersecurity are human based. Protexxa stood out as a scalable, export-ready company already making waves in foreign markets, with both strong user engagement and system-level impact.

Regarding Sandpiper’s portfolio, Young added, “One of the things we're really excited by and proving out in our thesis is that women-led and diverse founders consistently deliver strong capital efficiency and profitability, as we continue to see that growth throughout not only their tenure, but throughout our portfolio."

For Sanjay Swamy, Managing Partner and Founder of Indian VC firm Prime Ventures, the focus lies on tech startups—both Indian companies and those targeting the Indian market. This includes fintech services, formalization of the economy, and local SaaS companies, as India remains a hotbed for SaaS and broader IT innovation. Prime Ventures has also turned its attention to the healthcare industry.

Swamy recalls Dozee, a HealthTech company with a proprietary sensor sheet that records heart vibrations and, through AI and data science, converts them into contactless measurements of heart rate, respiration rate, and blood pressure. He adds, “It really takes a lot in healthcare to bring anything to market.” This leads him and his partners to consider two key aspects: one is the drive of the founders, and the second asks the question—is the prize worth winning?

James Shen, Managing Partner of Pioneer Ventures, was another member of the recent GXS Investors Panel. He expressed strong interest in early-stage tech companies, with a focus on space technology, AR, and AI—sectors he believes will define the next 20 years. Chen noted a global realignment of supply chains, commenting, “Essentially, it was a global trade, and we could rely on any supplier in the world. But now, the supply chain has been disrupted, entrepreneurs must look for more domestic suppliers to meet customer requirements.

One thing all three panelists agreed on is that mission-driven teams and visionary leaders consistently attract investment, provided the technology or product is scalable and applicable. Tariffs were also a common theme mentioned by all members of the GXS panel. They noted a ripple effect, which introduces uncertainty and instability, but also creates massive opportunities to enter emerging markets and gain traction overseas.

How AI Is Changing the Way Investors Evaluate Acquisitions in the IT Sector

Given that AI is such a present, disruptive trend for technology and global markets, Swamy believes AI will change every aspect of a business, particularly in the IT space. Transformative to how they run, operate and capitalize. Not only that, but M&A and investment criteria will adapt to current (and future) AI trends. He elaborates that AI is changing the way people work, which at the same time creates new opportunities for whoever is willing to take them. In the case of Prime Ventures, most of the companies in their portfolio are downsizing, despite scaling. “Companies need to start looking at every touchpoint and wonder: how can I use AI here,” he adds.

Similar to Sanjay, Young touches upon how AI hasn’t changed their investment thesis, but rather their internal processes. Nowadays, Sandpiper looks for companies who have integrated AI functions in some capacity, specifically in how they are running the company. “For a while, we almost encouraged founders to over-index on the pitch versus the product–market fit. They spent so much time perfecting the pitch, rather than making sure they really got that fit part.” Additionally, Young mentioned that AI enables entrepreneurs to keep a capped headcount, with smaller and more efficient teams. This is now considered a positive metric.

Common Mistakes Entrepreneurs Make—and How to Avoid Them

There were many takeaways from the Investors Panel, including several actionable insights shared by the speakers. James Shen observed that younger generations are now capable of building successful businesses in a remarkably short period. They develop intuitive user interfaces and easy-to-use technology, then market and launch these products using AI tools. This marks a paradigm shift—one that makes Shen question whether venture capital is even necessary in such cases, as many of these companies are already finding significant success on their own.

He then proceeds to advise entrepreneurs to build something with more moats. A product or service that casts a wider net. He adds that creating moats can make a business more sustainable. Sanjay agrees with Shen, as he firmly believes that companies with serious moats around product, distribution or through regulatory cover will do very well in the market. Swamy further adds that new companies—especially in the B2B space—should focus on solving difficult problems; otherwise, long-term sustainability may be challenging. While some companies might find early success, they may struggle to scale or replicate that success over time.

To finish, James Shen, Sarah Young, and Sanjay Swamy emphasized the importance of building a strong team to avoid navigating a potential M&A process alone. Being surrounded by the right people, they noted, is essential. As businesses gain traction, there is a need for improved

distribution and scalability growth, making M&A a compelling option to unlock stronger go-to-market capabilities. Sanjay closed the panel by sharing a quote: “Good companies never die of starvation, but they can often die of indigestion. If you’re building a good company, there will always be capital for you.”

WFS is hosting an upcoming Growth & Exit Strategies online conference “Scaling & Selling in the AI Era”, on November 6th. REGISTER HERE and hear from speakers representing KPMG, Astra Capital Management, Rockwell Automation, Expert DOJO, Butterfly Ventures, Corum Group, and more! 

All details available at wfs.com/conferences.