For decades, large venture capital firms played a central role in supporting startup growth across the United States. Recently, however, many senior partners at these firms have chosen to pursue new opportunities, often by launching smaller funds of their own.

What began as occasional moves has become more common since 2023. While junior turnover has always been part of the industry, senior partners leaving long-established firms marks a meaningful change. Their decisions reflect an evolving venture capital landscape, where the focus at bigger funds is often on managing large portfolios rather than working directly with entrepreneurs.

In many cases, those departing are creating their own investment platforms. These new ventures are designed to focus on early-stage opportunities, allowing experienced investors to work closely with founders and return to the core of venture investing—identifying promising young companies and supporting their growth.

This trend has been shaped by the rapid expansion of large VC funds during the post-pandemic period. According to Pitchbook, just nine U.S. funds accounted for nearly half of the $35 billion raised in 2024. That concentration has made bigger firms less nimble and less focused on early-stage opportunities.

For entrepreneurs, the shift brings new possibilities. Smaller funds are emerging with focused strategies and more direct partner involvement. While they may manage less capital than industry giants, these new firms often prioritize close relationships with founders and flexible investment approaches. The result is a broader range of funding options for startups entering the market.