Ben Lerer, managing partner of Lerer Hippo, one of New York's most prestigious seed-stage venture firms, shared some predictions with Fortune's Leo Schwartz.
He believes the bifurcation of venture firms will continue, with money flowing primarily into top funds such as Thrive and a16z and smaller, bespoke funds.
“When you die, you're kind of floating in the middle, managing billions of dollars and not doing anything particularly well,” he told Schwartz.
Billions of dollars are certainly not a lot of change, but many companies have struggled to raise capital since the end of 2021's high spending spree. The Financial Times also reported earlier this month that the number of venture companies operating in the United States is starting to decline as cash flow flows only to top companies. Perhaps the biggest example of a top VC firm announcing that it will close in 2024 is Foundry Group.