Venture Firms Pivot to Smaller Funds in Strategic Shift

Venture firms are scaling back on megafunds, as they reduce the size of their investment vehicles amid concerns of overvaluation and increased competition. This shift reflects a more cautious approach to fundraising, with firms focusing on smaller, more targeted funds to maintain flexibility and generate better returns. The move also comes as investors become more discerning, seeking out firms with proven track records and specialized expertise in specific sectors.