📬 EWVC newsletter: Is VC dead? The new rules of the game
RIA, Mega-Funds, and the Vanishing Middle: How 2025 Is Redefining Venture Capital, Concentrating Wealth, and Opening New Frontiers for Specialized and Underrepresented Investors.
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Quote of the day: "The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow."
— Rupert Murdoch, Media Businessman & Founder of News Corp.
The reinvention of VC in 2025
The traditional venture capital model is undergoing significant change. The classic VC playbook is being rewritten by mega-funds, regulatory shifts, and the newly created AI dynamics. A leading example is Lightspeed’s transition to a Registered Investment Advisor (RIA) structure. This shift reflects a broader trend driven by a growing need for liquidity and a more opportunistic approach to investing across multiple asset classes.
A Quick VC Evolution Storyline
1️⃣ Cheap money lit the fuse (2020‑H1 2021) - Zero‑rate policy plus pandemic stimulus unleashed record VC fundraising and exits; funds closed in weeks and “grow at all costs” ruled.
2️⃣ The party paused, valuations lagged (H2 2021‑2022) - Inflation + Fed hikes cut liquidity; deal count plunged while pricing stayed sticky, freezing the market.
3️⃣ Survival mode & down‑round reality (2022‑early 2023) - Bridge SAFEs, flat extensions and layoffs spread as exit value collapsed 90 % and deal value fell.
4️⃣ Generative‑AI reset sentiment (mid 2023) - ChatGPT’s breakout reignited capital; generative‑AI startups soaked up outsized rounds despite the broader slump.
5️⃣ Capital concentrates, not expands (2024) - Mega‑rounds ($100 M+) swallowed a significant share of total funding, hollowing out Series B/C “middle‑lane” deals.
6️⃣ Locking capital in (Q1 2025) - 145 mega‑rounds captured 70 % of dollars, largely driven by AI investments, while global deal count hit a 9‑quarter low - proof of the barbell market.
7️⃣ Expanding beyond traditional VC (2025) - Multi-Asset Mega-Funds - broader transformation across the venture capital landscape.
Multi-Asset Mega-Funds with a New Playbook: Roll-Ups, AI, and Permanent Capital
This shift from classic VC model allows firms to invest not only in traditional VC but also in crypto, private equity, secondaries, and other emerging asset classes. This positions them more like modern wealth management offices, offering advisory capabilities and diversified asset strategies under one umbrella. They can:
Invest in public equities and secondary shares
Launch, build and roll up companies internally (not just back them)
Offer wealth management services to founders and LPs
Hold long-term, permanent capital stakes beyond the typical 10-year VC cycle
Lightspeed Venture Partners’ RIA registration, managing $31 billion in assets, is representative of this shift. General Catalyst’s GC Wealth, with $2.3 billion AUM, and Andreessen Horowitz’s expansion into wealth management and secondaries, further illustrate this new multi-asset model.
Similarly, Thrive Capital’s $1 billion Thrive Holdings is a “permanent capital vehicle” designed to acquire and build AI-native companies, holding them indefinitely. General Catalyst’s “Creation strategy” deploys $1.5 billion to invest in and scale AI startups, often by acquiring their potential customers and integrating them into a broader ecosystem.
It is becoming clearer by the minute that the lines between VC, PE, and even corporate development are blurring fast. In a context of low M&A and IPO activity and market uncertainty, finding ways to convince LPs of the success of the asset class becomes of capital importance.
This evolution makes such firms increasingly attractive to Limited Partners (LPs). These firms deliver strong returns, offer liquidity, and operate with flexibility that aligns with the 🇺🇸 American model of multi-asset asset management. This trend is still relatively new, but it’s gaining traction fast, especially among major U.S. asset managers who recognize the potential and are actively reshaping their business models.
The Bifurcation: Mega-Funds vs. Niche Specialists
Despite headlines about a VC freefall, the data tells a different, more nuanced story.
👉 Global venture funding hit c.$120 billion in Q1 2025-the highest since Q2 2022, largely driven by mega-rounds like OpenAI’s $40 billion raise.
👉 Even excluding outliers, funding remains robust, but the number of deals is falling. Capital (and wealth) is (and will keep) concentrating in fewer, larger bets, creating a “winner-takes-most” dynamic that leaves many startups-and smaller funds-struggling to keep operations running.
The industry is splitting in two:
Mega-fund RIAs: Diversified, multi-asset platforms with permanent capital and operational muscle
Niche and solo GPs: Focused, agile investors who continue traditional early-stage VC, often in specialized sectors. 👉 Check them out here!
The middle ground is disappearing. The number of active VC firms has shrunk by over 25% since 2021. Many mid-sized funds are becoming “zombie VCs,” unable to raise new capital or compete for deals.
A key question remains: Are LPs on board with this ‘new trend’, particularly in Europe?
Yes they are. 🇪🇺 European pension funds have invested in 🇺🇸 U.S. venture capital firms adopting this RIA model, but they have largely avoided similar investments within Europe. While U.S. firms raise capital through flexible, private market structures, European investors risk being left behind.
European pension funds manage €3.5 trillion, yet only 0.01% is allocated to venture capital - citing risk, regulation, and lack of experience. this highlights significant funding gap and untapped potential. Europe must support innovation.
Pensions for Purpose and Venture Connections/European Women in VC are launching a new survey to understand pension funds participation in Venture Capital and Growth investments.
Ending notes!
The VC isn’t dead - but it’s being played differently. The old VC model is fading, but venture capital as a force for innovation is alive and evolving. The winners will be those who embrace this complexity-whether as mega-funds building platforms or as specialists carving out new niches.
🙌🏼 People who inspired us lately
Fidji Simo
Fidji Simo, CEO and Chair at Instacart, Board Member at OpenAI and Shopify
She was the first in her family to graduate from high school. Today, she is the CEO of a $10 billion company and a leader at one of the most influential artificial intelligence firms in the world.
👉 Read more here
🤑 Latest Fund News
Vinted Ventures is live! 👥
Vinted has just launched Vinted Ventures, their new in-house VC arm targeting Series A to C startups in the re-commerce space. With up to three investments a year and ticket sizes from €500k to €10m, they aim to support companies advancing the secondhand market - across shipping, payments, and consumer behavior tech.
Carbon Equity keeps growing! 🚀
Carbon Equity has just closed their third climate tech fund at €105M, raised from 460 private and institutional investors. Through 7–10 selected PE and VC funds across Europe and the US, they’ll invest in at least 150 climate innovations - from green steel and geothermal to next-gen batteries.
Funding news⚡
Orizon Genomics just raised €30m!
Industry: Biotech | Location: 🇪🇸 Spain | Funding: €30M Capital Increase
Barcelona-based Oryzon Genomics, a clinical-stage biopharma innovator in epigenetic therapies, has raised €30 million through a capital increase. The round, anchored by a major US institutional investor, will fuel clinical development for CNS and oncology treatments and support a potential Nasdaq listing.
👉 Read more here.
OKAPI-Orbits has raised €13m
Industry: Space Tech | Location: 🇩🇪 Germany | Funding: €13M Seed Round
Braunschweig-based OKAPI:Orbits, a leader in space traffic management software, secured €13 million in seed funding to scale its platform that enables safe and efficient satellite operations. The round was led by Ventech, with support from Matterwave Ventures and tech-focused angels like Christian Miele.
👉 Read more here.
Hormona raised $6.7M Seed Round
Industry: FemTech | Location: 🇬🇧 London | Funding: $6.7M Seed Round
London-based Hormona’s mission is deeply personal. CEO and co-founder Karolina Löfqvist spent years suffering from hormone-related symptoms without a clear diagnosis — a reality shared by 80% of women worldwide. That experience fueled the company’s creation: a science-backed solution to help women take control of their hormonal health. Voima Ventures leads the Seed Round joined by Supernode Global, and joined by DLF Venture, Nascent Invest, and Techstars
👉 Read more here.
Augmented Hearing raises €3M
Industry: DeepTech | Location: 🇩🇰 Denmark | Funding: €3M Seed Round
Copenhagen-based Augmented Hearing Ltd., a DeepTech startup pioneering advanced speech understanding for high-stakes communication environments, co-founded by Mette Louise Vestergaard Carstensen secures a €3M round led by Crowberry Capital.
👉 Read more here.
🎧📚 What are we reading and listening to?
Sustainability in VC and PE Gains Momentum - Key Findings from Tesi’s Latest Study - Read more here.
The Global Tech Ecosystem Index 2025 - A global index of startup ecosystems in 288 cities across 69 countries by Dealroom.
"Finding the Leading Wealth Management Offerings of Tomorrow" by Andreessen Horowitz
Startup Coalition's "Girls just wanna have funding" latest publication!
What we have been up to? 🎉
Women. Tech. Capital - Gitex Europe
An excellent panel led by Marta Wysoczyńska explored how the EIC is shaping a more inclusive innovation landscape in Europe. Kinga joined the discussion alongside Teresa Hernandez Martin and Gesa Miczaika.
🇪🇺 EU Annual Budget Conference
Kinga Stanislawska, founder of European Women in VC joined panel discussion at the 🇪🇺 Annual EU Budget Conference along with Kai Mykkänen, Matthieu Louvot, Carlos Cuerpo, Carla Tavares and Henry Foy
Venture and growth is an important and most impactful asset class that should be strengthened by budget support to build a private fund of funds layer in Europe (a revival of VentureEU?) and by catalysing secondaries funds. The biggest impact would be providing liquidity through all mechanisms (importantly Capital Markets Union) to attract new players to venture and startups.
👉 Read more here
EU Innovation Journey
During the EU Innovation Journey in 🇵🇱 Warsaw, Kasia Piasecki and Kinga Stanisławska from European Women in VC moderated two key panels addressing innovation and startup growth in Europe and the CEE region.
Kinga moderated "Accelerating Innovation: Turning CEE Potential into Global Success" with panelists such as Marek Garniewski (Orlen VC), Stéphane Ouaki (EISMEA), Viktoria de Bourbon de Parme (EIT Food), Przemysław Pączek (Nevomo), and Aleksander Mokrzycki (PFR Ventures).
Kasia led the panel titled "Start Up & Scale Up Strategy" with panelists: Iwona Biernat,(EU-Inc), Andras Inotai, (DG Research and Innovation, European Commission), Bartłomiej Kot, (Startup Poland), Jakub Dąbroś, (Innovations Hub), Dariusz Łukaszewski, (Ministry of Economic Development and Technology), Eve Peterson, (Enterprise Estonia)
👉 Read more here
Lunch & Learn on Secondary Markets
A big thank you to everyone who joined and actively participated in our Lunch & Learn session on the secondary market! Special thanks to our speakers: Rando Rannus, General Partner, Siena Secondary Fund, Simon Schachinger, Partner, Orbit, moderator: Iwona Cymerman, GP, FundingBox Deep Tech Fund and EWVC member
We discussed what exactly are secondary markets – a term with many interpretations; pricing secondary transactions; how to determine the right price when buyer and seller expectations differ? Does the secondary market have a future?
👉 Read more here
Upcoming EWVC event 🎟️
Join us for the LP-GP Lunch | Women & Men Allies in VC, June 2nd, 🇩🇪 Berlin
The event is done in collaboration with: Goodwin & European Investment Fund (EIF)
Attend one of our partners’ events 🎟️
VDS2025, October 22-23, 🇪🇸 Valencia
Apply for a free attendee pass: info@europeanwomenvc.org
SuperInvestor, November 4 – 7, Amsterdam
SuperVenture North America, 18 November, NYC
We're a squad of over 1000 senior female venture capital wizards from all over Europe and beyond. We're here to flip the script and make things right.
Join us in shaking up the VC world! 🚀
Join us as member, partner or ally | Book a meeting
Take care!
European Women in VC
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