The Venture Capital Model Is Being Rewritten
Some of the most well-known venture capital firms in the world—Lightspeed, Andreessen Horowitz (a16z), and General Catalyst—have made a quiet yet fundamental change to how they operate. They’ve restructured themselves as Registered Investment Advisors (RIAs). On paper, that sounds like a minor regulatory update. In practice, it’s a clear sign that the old rules of venture capital no longer work the way they used to.
For decades, venture capital followed a predictable model. Raise a fund, invest in early-stage startups, help them scale, and exit through an IPO or acquisition within about ten years. But over the past decade, everything about that model has been stretched to the point of breaking. And these RIA conversions are the strongest signal yet that some of the world’s most astute investors are taking action to stay ahead.
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