Ben Lerer, managing partner of Lerer Hippeau, a prestigious seed-stage venture firm in New York, recently shared predictions with Fortune’s Leo Schwartz.
He predicts that venture firms will continue to split into top funds like Thrive and a16z, as well as smaller, more specialized funds.
According to Schwartz, he stated, “Where you go to die is somewhere in the middle, managing a few billion dollars, and not excelling in any particular area.”
Although managing a few billion dollars is significant, many firms have struggled to raise funds since the end of 2021’s spending spree. The Financial Times reported that the number of active venture firms in the US is decreasing, with cash flowing mainly to the top firms. For example, a prominent VC firm, Foundry Group, announced its closure in 2024.
