2025 ANZ Tech Predictions: The Rise of Family Office – A Conversation with Dom Pym
I sat down with Dom Pym, co-founder of Up (easily the best bank in Australia) and founder of the family office Euphemia, to explore key trends shaping the ANZ venture capital and startup ecosystem in 2025. From the rise of fintech and the evolving role of family offices to innovations in sustainability and AI. Dom shared his unique perspective drawn from managing investments across 70+ startups and 26 funds spanning venture capital, private equity, and debt.
Shifts in the Venture Ecosystem
Jess Walker: Dom, thank you for making the time. Let’s start big: What trends do you see defining 2025?
Dom Pym: Pleasure to chat, Jess. From where we sit at Euphemia, we’ve observed two significant trends.
First, there’s been a marked uptick in momentum and a renewed focus on deploying capital. While the first half of 2024 was slow, activity picked up significantly in October, evidenced by a surge in capital calls.
Capital calls are one of the indicators we use to assess market activity. In the first few months of 2024, there was little movement, but by late in the year, we saw consistent calls coming through, signaling renewed confidence. This wasn’t limited to Australia; similar momentum was visible in the U.S. as well, suggesting a global resurgence.
Euphemia’s diverse portfolio of funds gives us a bird’s-eye view across sectors and stages, and the data indicates that confidence is returning. These insights are helping us think about how we might productize this unique perspective to provide even greater value to the ecosystem. I’d expect 2025 to be a year of increased activity and opportunity.
Fintech's Unrelenting Growth
Jess: Any particular sectors or regions you’re bullish on?
Dom: Fintech continues to dominate, and I see that trend persisting into 2025. Regulatory changes in New Zealand could lead to the launch of two new digital banks, and there’s exciting fintech activity emerging in underserved regions like the Pacific Islands. These ecosystems are evolving to meet new demands, creating opportunities for innovation and investment.
At Euphemia, we’re actively exploring how to turn insights into actionable tools, such as productising our data on capital calls and deal flow to add value to the broader ecosystem.
Women in Investment
Jess: You’re a huge advocate for women in tech and investment, what have you observed over the last few years and how are you expecting this year to shape out?
Dom: Over the past five years, we’ve seen the number of female LPs grow from a handful to more than 30. This growth is mirrored on the founder side, thanks to initiatives like the National Reconstruction Fund, which allocated $300 million to female founders. It’s encouraging to see more women represented across both sides of the ecosystem.
The Evolving Role of AI and Robotics
Jess: AI and robotics are always hot topics. What excites you most this year?
Dom: The convergence of AI and robotics is creating practical, game-changing applications that are addressing real-world problems. A great example is Andromeda, a robotics company that recently closed its first major deal, selling 22 robots for millions of dollars. What’s remarkable about this is that they’ve generated more revenue than the total capital they’ve raised so far, a testament to the tangible value they’re delivering.
We’re seeing robotics applied in areas like manufacturing, healthcare, and even companionship. In manufacturing, these robots enhance efficiency by combining AI decision-making with physical automation. On the healthcare side, they’re addressing critical needs such as elder care and physical assistance, where labor shortages persist. Companionship robotics is another fascinating frontier, with applications that cater to mental health and social well-being.
Jess: How is AI driving this shift?
Dom: AI has moved beyond hype into practical, scalable solutions. Startups are now integrating AI into physical systems, creating tools that are not only intelligent but also functional in the real world. This blend of software and hardware is what excites me most, it’s about solving problems that go beyond just digital. AI-powered robotics will play a significant role in reshaping industries like agriculture, logistics, and even entertainment.
Additionally, as AI becomes more accessible, we’re seeing smaller startups innovate in niche areas that were previously dominated by larger players. It’s this democratisation of technology that will accelerate progress in 2025.
Sustainability and Its Growing Impact
Jess: How does sustainability factor into your 2025 outlook?
Dom: Sustainability has been a personal focus for 25 years, but it’s becoming mainstream thanks to new ASX regulations requiring ESG reporting.
Public companies now have accountability measures in place, which is trickling down to the startup ecosystem. Startups will increasingly align with ESG goals, becoming B Corps and integrating sustainability into their products. This shift opens up opportunities for startups working on measurement and reporting tools.
We’ve also seen universities and research groups ramp up commercialization efforts in clean tech and industrial innovation. These areas often move slowly but hold enormous potential for long-term impact. It’s a space to watch as deep tech and sustainability converge.
Family Offices Driving Venture Growth
Jess: Family offices seem to be playing a larger role in venture capital. What’s your take?
Dom: Family offices are definitely stepping up, increasing their venture allocations from single digits to double digits. Education and success stories are helping fuel this shift. Maxine Minter and I have been actively engaging with family offices, conducting roadshows and strategy sessions to help them see the potential in venture. We’ve been focusing particularly on Perth, which is well-positioned to lead this change because it’s less influenced by the politics and social pressures of Sydney or Melbourne.
We’re seeing a lot of momentum. For example, one retired founder of a $7 billion public company recently reached out to us after selling $100 million worth of equity. Within 15 minutes of stepping down, he messaged me, wanting guidance on building his family office and developing a strategy to allocate capital into venture. That’s the kind of enthusiasm and interest we’re witnessing.
Internationally, we’re seeing new players enter the Australian venture ecosystem too. This signals a diversification away from traditional superannuation funds and highlights the growing importance of family offices in funding the venture ecosystem.
Additionally, as we talk about this more openly, family offices are reaching out to us for help. We’ve been running strategy days and providing advice on how to diversify across sectors, allocate capital effectively, and balance income strategies. It’s been exciting to see more family offices actively participating in venture and recognising the potential for both impact and returns.
2025 is shaping up to be the year where we see family offices move from less than 1% venture allocations to double digits across the board. That shift will significantly impact capital raising for venture funds and create a stronger foundation for the ecosystem.
Valuations: A Return to Fundamentals
Jess: How do you see valuations evolving in 2025?
Dom: Valuations are undergoing a necessary correction. The frothy days of 2021 are long gone, and that’s a good thing. We’ve seen valuation drops of up to 80% in some cases, but on average, it’s closer to 30%. This correction is shifting the focus back to fundamentals: capital preservation, cost efficiency, and profitability.
Businesses are now prioritising break-even points and sustainable growth over rapid scaling. This shift is creating healthier startups with clearer paths to longevity. I also think the conservative valuations we’re seeing are giving both founders and investors a chance to reset expectations and build smarter.
Jess: Do you see any optimism for higher valuations?
Dom: Optimism comes from the quality of deals. While valuations might remain conservative, the demand for strong, profitable businesses is increasing. Family offices, in particular, are becoming more discerning, seeking out companies with robust fundamentals. It’s not about chasing unicorns anymore; it’s about finding solid, scalable businesses that can withstand market volatility.
We’re also seeing new opportunities emerge from AI, clean tech, and fintech, sectors that are ripe for innovation. If companies in these areas can prove their value early on, they’ll attract investment, even at conservative valuations.
Jess: Dom thank you for your time, this has been fantastic.
Dom: Thanks Jess! Great to chat.
Up Bank and Euphemia
Up is a digital bank (arguably the best in ANZ) launched in October 2018, with Founders Dom Pym and Grant Thomas through a collaboration between Bendigo and the software development company Ferocia. Designed to simplify financial management, Up offers a mobile-first banking experience with features like automated savings tools, real-time spending insights, and fee-free international transactions. Since its inception, Up has attracted over 1 million customers, reflecting its commitment to innovative, user-centric banking solutions.
Euphemia is Dom’s Family Office. Led by Group CEO Judy Anderson-Firth, Euphemia manages a global investment portfolio of approximately $80 million, encompassing private and public equities, venture capital, property holdings, and the Euphemia Foundation, which supports individuals and communities in need. The firm focuses its direct venture investments on four key areas: FinTech, ClimateTech, women-led startups, and startup infrastructure. Euphemia has invested over $15 million in more than 20 funds globally, including Australian funds such as Airtree, Giant Leap, Possible Ventures, and Square Peg Capital. Through its syndicate platform, Euphemia shares deal flow with a network of co-investors, including other family offices, venture capitalists, angels, ecosystem partners, and founders.
