What Will Disrupt Venture Capital Next?

Strategy

May 10, 2025

Top investors reveal trends set to reshape VC in 10 years.

Topics discussed in the episode:

Why will specialization become more important for VCs and founders?

How will AI impact software margins and the venture industry?

How is traditional venture capital changing and what should VCs offer founders today?

Why will specialization become more important for VCs and founders?

In complex industries, deep specialization is key for both VCs and founders to succeed.

"I think that the PE and VC world will reward specialists over the next 10 years because... understanding of space matters."

- Founders in complex sectors should work with specialized VCs. - Deep domain expertise offers a competitive advantage. - Specialization aids in tackling industry-specific challenges.

How will AI impact software margins and the venture industry?

The rise of AI may disrupt software margins, challenging current business models in software.

"What's going to happen to annuity when the marginal cost of software engineering gets to zero?"

- Reevaluate business models due to decreasing software costs. - Innovate value propositions as AI commoditizes software development. - Anticipate shifts in software economics caused by AI.

How is traditional venture capital changing and what should VCs offer founders today?

Founders now need more than just capital from VCs to succeed.

"In today's landscape, VCs have to offer more than money. It has to be real actionable value to the founders if they want to succeed."

- Seek VCs offering actionable value beyond money. - VCs should provide direct services to attract top founders. - Capital alone isn't enough in today's competitive landscape.