Venture Capital is dead. Long live Private Equity. Lightspeed....
The Icahnist@TheIcahnist
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May 02, 2025
~2 min read
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1
Venture Capital is dead.
Long live Private Equity.
Lightspeed. Thrive. a16z. Sequoia.
They’re buying and rolling up companies like Private Equity giants.
Silicon Valley is turning into Private Equity Valley🧵👇
Long live Private Equity.
Lightspeed. Thrive. a16z. Sequoia.
They’re buying and rolling up companies like Private Equity giants.
Silicon Valley is turning into Private Equity Valley🧵👇
2
Game Changer: Lightspeed becomes an RIA
Lightspeed Venture Partner has officially registered as a Registered Investment Advisor (RIA).
This is not just a legal formality.
It is a tectonic shift.
It means Lightspeed can now invest without limits in:
✔️ Public stocks
✔️ Secondary shares
✔️ Private equity-style buyouts
✔️ Roll-ups
They can now act like Blackstone in a hoodie.
Lightspeed Venture Partner has officially registered as a Registered Investment Advisor (RIA).
This is not just a legal formality.
It is a tectonic shift.
It means Lightspeed can now invest without limits in:
✔️ Public stocks
✔️ Secondary shares
✔️ Private equity-style buyouts
✔️ Roll-ups
They can now act like Blackstone in a hoodie.
3
VC Firms Are Becoming RIAs
The traditional VC model is broken at scale.
Without RIA status, VCs are restricted:
⛔ Only 20% of capital can be invested in "non-qualifying" assets
⛔ Can't actively manage or advise companies beyond a certain point
⛔ Can't pursue liquidity outside IPOs or M&A
The traditional VC model is broken at scale.
Without RIA status, VCs are restricted:
⛔ Only 20% of capital can be invested in "non-qualifying" assets
⛔ Can't actively manage or advise companies beyond a certain point
⛔ Can't pursue liquidity outside IPOs or M&A
4
The Great Shift:
Andreessen Horowitz
RIA since 2019 → Wealth mgmt division → Twitter buyout → Crypto empire → PE-style governance
Sequoia
Reorganized into a single evergreen fund model, radically different from typical VC fund structures.
General Catalyst
Acquired a non-profit hospital system (Summa Health), built AI-native ventures, and stopped calling itself a VC firm.
Thrive Capital
Launched Thrive Holdings, a $1B vehicle to build and buy companies shaped by AI.
Andreessen Horowitz
RIA since 2019 → Wealth mgmt division → Twitter buyout → Crypto empire → PE-style governance
Sequoia
Reorganized into a single evergreen fund model, radically different from typical VC fund structures.
General Catalyst
Acquired a non-profit hospital system (Summa Health), built AI-native ventures, and stopped calling itself a VC firm.
Thrive Capital
Launched Thrive Holdings, a $1B vehicle to build and buy companies shaped by AI.
5
The traditional VC strategy
📦 Make 25 early bets
🕰️ Wait 10 years
🍀 Hope for 2 unicorns
The new RIA playbook
🏗️ Launch and acquire companies
🔧 Rewire them with AI
🧱 Use secondaries to build long-term positions
📈 Own meaningful stakes, not just board seats
📊 Think in platform terms — not portfolios
📦 Make 25 early bets
🕰️ Wait 10 years
🍀 Hope for 2 unicorns
The new RIA playbook
🏗️ Launch and acquire companies
🔧 Rewire them with AI
🧱 Use secondaries to build long-term positions
📈 Own meaningful stakes, not just board seats
📊 Think in platform terms — not portfolios
6
The Liquidity Engine
The secondary market is exploding.
Startups are staying private longer than ever.
💥 2012: $25B in secondaries
💥 2025 (est.): $100B+
VCs are stepping in and buying stakes in late-stage startups before IPOs.
Lightspeed just hired ex-Goldman MD Jack Fowler to head its secondary strategy.
The secondary market is exploding.
Startups are staying private longer than ever.
💥 2012: $25B in secondaries
💥 2025 (est.): $100B+
VCs are stepping in and buying stakes in late-stage startups before IPOs.
Lightspeed just hired ex-Goldman MD Jack Fowler to head its secondary strategy.
7
Operator Transformation Playbook
New strategy:
→ Building AI-native companies internally
→ Buying undervalued legacy firms and rebooting them with AI
→ Creating vertical roll-up plays using AI as a compounding force
New strategy:
→ Building AI-native companies internally
→ Buying undervalued legacy firms and rebooting them with AI
→ Creating vertical roll-up plays using AI as a compounding force
8
General Catalyst: Radical Strategy Shift
Left VC identity behind altogether.
→ Acquired a hospital system
→ Building in-house AI startups
→ Created a wealth management arm
→ Rebranded as a "Transformation Company"
Left VC identity behind altogether.
→ Acquired a hospital system
→ Building in-house AI startups
→ Created a wealth management arm
→ Rebranded as a "Transformation Company"
9
What Comes Next in the VC World?
Next 3–5 years:
1. AI-native roll-up strategies (across sectors like healthcare, infra, fintech)
2. More VCs acquiring real businesses (like General Catalyst did)
3. Dedicated secondaries platforms
4. Public market crossovers
5. Tech-enabled fund infra at PE scale
6. Consolidation of mid-tier VC firms
Next 3–5 years:
1. AI-native roll-up strategies (across sectors like healthcare, infra, fintech)
2. More VCs acquiring real businesses (like General Catalyst did)
3. Dedicated secondaries platforms
4. Public market crossovers
5. Tech-enabled fund infra at PE scale
6. Consolidation of mid-tier VC firms