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Sequoia announced in a memo posted to X that it is shutting down its scout program, which let selected founders and operators invest on the firm's behalf, and closing its London office. The firm described the changes as part of a push toward more focus rather than a critique of the scouts model itself.
Limited partners interviewed by the publication say they have abandoned venture capital's traditional diversification playbook, with many backing OpenAI and Anthropic simultaneously across multiple funds despite industry norms against overlapping bets. Beezer Clarkson of LGT Capital Partners and Amit Bhatti of TrueBridge both describe the current environment as unusually fast-moving, with LPs largely untroubled by the concentration risk given expected returns. The two did flag concern about how quickly VC firms are returning to raise new funds.
At the annual DataTribe Challenge, a competition for early-stage cybersecurity startups, investors evaluated new entrants and discussed which types of security technology they would prioritize funding going forward. The event showcased emerging companies while giving venture investors a platform to share views on where the cybersecurity market is heading.
A contributor column for Entrepreneur argues that as venture funding tightens, startups should focus on capital-efficient growth rather than growth-at-all-costs tactics. The piece recommends investing in human-crafted brand messaging and positioning, defining clear customer profiles and journeys, and automating routine marketing tasks while avoiding generic AI-generated content.
The founder of Desert Forge Ventures, an early-stage venture capital fund focused on the Las Vegas startup ecosystem, describes a three-part approach called Act, Adjust, Absorb for making business decisions. The framework emphasizes gathering sufficient evidence rather than waiting for certainty, testing assumptions through conversations with knowledgeable contacts, and reflecting on outcomes afterward to refine judgment over time.
Venture firm Inspired Capital has closed its fourth fund at $450 million, earmarked for backing early-stage founders. The announcement coincides with the firm marking seven years of operation under what its leadership describes as a 25-year business plan.
New York venture firm Inspired Capital, founded by Alexa von Tobel and Penny Pritzker in 2019, has closed a $450 million fourth fund, pushing its total assets under management to nearly $1.4 billion. The firm invests in about 10 early-stage companies annually, writing checks of $1 million to $15 million, and has produced 12 unicorns and more than 10 exits across its first two funds, including MosaicML's $1.3 billion sale to Databricks.
At TechCrunch Disrupt, Benchmark's five general partners discussed how the firm raised $2 billion across two funds this summer, only the second time in its 31-year history it has departed from a smaller fund size. Partner Peter Fenton said the firm's core approach to early-stage investing remains unchanged, with the larger fund size reflecting inflation adjustment and a new growth fund expanding the firm's mandate beyond early-stage deals.
At TechCrunch Disrupt, Benchmark partner Eric Vishria said the long-standing venture capital norm against funding directly competing startups is becoming unsustainable as AI companies rapidly pivot into overlapping markets. His comments followed a public dispute between AI coding startups Factory and Cognition, after Factory fired an adviser for allegedly discussing a job with Cognition while sitting in on Factory's board discussions, prompting investor Vinod Khosla—who backs both firms—to publicly criticize Factory.
Endeavor Catalyst announced the closing of its fifth fund with $320 million in commitments, increasing its total assets under management to over $850 million. The fund aims to support founders in regions outside the Bay Area, with a focus on those who are part of Endeavor's global network of entrepreneurs. The firm plans to make 40 to 50 investments annually, targeting up to 150 companies with checks typically ranging from $1 million to $3 million.
A little-known venture capital firm based in Dallas, known for early investments in AI chip startup Groq, is reportedly seeking to raise a megafund of roughly $10 billion. The fundraising push follows strong returns from its AI-related bets, positioning it among a small group of firms pursuing funds of that scale.
Credit rating firm Egan-Jones published a commentary titled 'It's Over,' arguing that AI capabilities have crossed a threshold enabling widespread adoption that will disrupt hourly-billed professional services and senior talent roles. The firm predicts compressed margins in professional services, lower venture capital returns, and short-term pressure on home prices as screen-based jobs are affected. It also forecasts a new business model where highly successful firms operate with very few or no employees.