The Rise of Valuation Technology: How Private Markets Are Adapting in 2025

Insights from 200+ Valuation professionals and industry experts on the digitalization of valuations for faster, more frequent reporting

Executive Summary

The private markets valuation landscape is undergoing a necessary transformation. Driven by an influx of retail capital (i.e. Retailization), evolving investor expectations, demand for faster and more frequent valuations, increased regulatory scrutiny, and technological advancement, valuation is evolving from a periodic compliance task to a strategic function central to decision-making.

This white paper explores exclusive insights from the May 2025 IVSC (International Valuation Standards Council) and 73 Strings Scenario-Driven Valuations webinar (Scenario-Driven Valuations: Navigating Uncertainty with Confidence), proprietary polling data, and third-party research to explore six interconnected trends that are reshaping valuation:

1. Valuation Frequency Is Accelerating: Nearly half of webinar respondents expect monthly or real-time valuations to become the new default within three years, spurred by retail demand, evergreen fund structures, and macro volatility.
2. AI as a Force Multiplier, Not a Replacement: While AI is streamlining data extraction, modeling, and investment memo generation, experts emphasize that human oversight remains essential for credibility, transparency, and regulatory trust.
3. Data Volume and Transparency Demands Are Rising: LPs are asking for more granular and frequent reporting, while legacy Excel-based models struggle to provide the control and traceability required to meet these expectations.
4. Valuation as a Strategic and Intelligence-Led Function: Valuation teams are increasingly being tapped for scenario modeling, sensitivity analysis, and strategic forecasting. Firms that structure their data can use it for competitive advantage.
5. From Excel to Enterprise: Leading managers are transitioning to centralized, cloud-based platforms to manage valuations efficientlyrisk, and unlock operational leverage. The future of valuation is structured, connected, and auditable.
6. Centralization of the Valuation Function: Firms are moving valuation responsibility away from deal teams and into dedicated, centralized teams to improve consistency, standardization, and free up deal teams to focus on making investment decisions.

Across all themes, the message is clear: the valuation function is at a crossroads. Firms that embrace digital transformation, strengthen governance, and treat valuation as a strategic enabler – not just a reporting obligation – will be best positioned to scale, adapt, and win investor trust in a more complex private capital environment.