Life can be difficult, as M. Scott Peck wrote in his bestseller The Road Less Traveled. It’s a theme well illustrated by the Christmas classic, It’s a Wonderful Life, where the protagonist George Bailey encounters significant business trouble. He’s pushed to the brink before an unlikely character named Clarence, an angel in search of his wings, helps George find perspective on how remarkable his life -- and his impact on others -- has been.
As shared in the companion article, Team Serra has had the privilege to work with Aaron Burns on a feature film on the life of Jimmy Stewart, the actor who portrayed George Bailey in It’s a Wonderful Life. As in the film, so it has been in the venture industry since 2022. The macroeconomic environment has been unkind to startups and the venture capital funds that back them. For most of the last four years, we’ve experienced a unique combination of high interest rates, high inflation, little to no IPO activity, depressed M&A activity, and a difficult arena in which to raise capital.
While 2025 started with some promise of change, the level of economic uncertainty – particularly with the Liberation Day tariff announcements -- created “more of the same” for IPOs and M&A exits. We’ve certainly felt the effects here at Serra. But perhaps we need to put on a different set of spectacles as we look back on the last several years. In doing so, we’ll see several positives –
A difficult environment causes the cream to rise….and we’ve seen that across the Serra portfolios. 15 of our 69 portfolio companies exceeded $10 million in revenue in 2025 and an additional 7 or 8 are expected to do so next year. Statistically, less than 1% of startups make it to the $10 million threshold, so Serra’s portfolio companies are far exceeding the expected stat line.
The problems being solved by Serra startups haven’t gone away. The market still demands that new and innovative solutions be commercialized.
Challenge and difficulty are one side of the coin. The other side is opportunity. Those venture firms that have remained viable and strong have been able to continue deploying capital to worthy companies that are indeed innovating.
At Serra, we believe in our mission more than ever – investing in world-changing teams solving the biggest problems. With our current fund – the Serra Capital Ag & Food Tech Fund II, we can see the front lines of food and agriculture. From that vantage point, the mandate has never been more compelling – the world needs innovative solutions to the most perplexing problems like rising food costs, chemical impacts on the land and supply chain inefficiencies.
We’re grateful to have the opportunity to do the important work we do – even with the headwinds that the venture industry has faced for several years. Just as we ask our entrepreneurial teams to remain resilient, we’re asking the same of ourselves and our limited partners. As we look to 2026 and beyond, we’re optimistic that the tide will turn. It is our strong belief that our portfolio companies will continue to thrive and that meaningful exit transactions will become more frequent. At the same time, we’re working on novel liquidity solutions to bring to the market in 2026 – so stay turned for that.
To our investors, colleagues and friends, we say “thank you” for your trust in us. Best wishes for a Holiday Season full of joy, peace and fruitfulness.
The Managing Partners and Team Member of Serra Ventures
