Venture capital is undergoing a fracture due to scale, liquidity pressure, and excessive capital accumulation.
1. The Platform VC model involves large firms like Lightspeed and Sequoia adapting to the need for more unicorns per fund, blurring the lines between venture capital and private equity.
2. The Studio Model focuses on scaling conviction and disciplined investing, as seen in firms like AI Fund and Bending Spoons.
3. Some smaller VC firms continue to support founders from the early stages, maintaining the traditional venture capital approach.
4. The fracture in venture capital is driven by capital outpacing outcomes, leading to changes in fund sizes and exit strategies that demand a shift in management approaches.