The Evolution of Venture Capital

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Welcome to another edition of First AI Movers Pro! Today, we will explore the Evolution of Venture Capital: from startup investors to Transformation Engines.

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Venture capital is undergoing a quiet revolution. Top VC firms that once stuck to funding startups are now reinventing themselves as multi-asset powerhouses. In this feature, we explore how Andreessen Horowitz, Sequoia Capital, General Catalyst, Thrive Capital, Lightspeed, and others are morphing from traditional startup investors into “transformation engines.” From registering as RIAs and launching evergreen funds, to dabbling in buyouts, permanent capital vehicles, secondary markets, and even acquiring entire companies, these firms are breaking the old VC mold. What’s driving this shift? A mix of market forces (startups staying private longer, scarce IPOs), regulatory leeway, and the massive opportunities (and challenges) of the AI era. Buckle up for an in-depth look at the new face of venture capital, complete with recent examples and the forces at play.

Venture Capital’s New Playbook: Go Big, Go Long, Go Broad

The venture capital industry is fundamentally changing. High valuations and low liquidity in recent years have left many VC firms with huge funds but fewer exit opportunities. Rather than wait a decade for IPOs that may never come, elite VCs are adopting tactics once reserved for private equity. They’re launching new investment structures, buying companies outright, and rolling up businesses to create value beyond just writing startup checks. In short, venture capital is starting to look a lot more like a multi-asset private equity-style operation – albeit one fueled by technology and long-term “transformation,” not just financial engineering.