Not your grandparents' VC...
Acquisitions by traditional VC firms are on pace for an all-time high in 2025. We are seeing the rise of the "full-stack investor" and a blurring of lines where traditional VC firms, particularly those operating at scale or in specific sectors, are incorporating PE models regarding financial metrics, operational involvement, and strategic *acquisitions* to adapt to the current investment landscape.
Lightspeed is the latest traditional VC (Thrive, a16z, Sequoia, General Catalyst, and more) to revamp its structure (becoming an RIA) to move beyond the traditional VC model of "invest, wait, and hope for exit" to be able to a) more actively manage and advise companies and b) pursue more paths to liquidity.
The shift towards PE-style models are a logical extension of a venture landscape with increasing capital concentration and larger deal sizes. The move towards larger stakes and longer holding periods (implied by larger, later-stage rounds) necessitates a more hands-on approach, closer to PE's focus on operational improvements and strategic value creation.
Three likely outcomes from a shifting VC model:
1) Even more acquisitions by traditional VC firms
2) The big firms get bigger – bigger checks and acquisitions require bigger funds, more diversified models attract more, different investors
3) Secondary sales and roll-ups will become more common exit routes
What will the rise of the "full-stack investor" mean for startups, investors, and private markets?