VC insiders say many partners left big firms in 2024, either quitting or being pushed out, as bleak market conditions led to less funding and leaner operations
Mired in an industry downturn, investors that usually stick around for years are stepping back from jobs to start new firms — or getting pushed out.
Context & Ripple Effects
The departures extend a downturn already visible in warnings that a large share of VC firms faced strategic pressure and in slower global VC fundraising in early 2024.
The pattern also follows firm-level retrenchment at OpenView, where staff cuts and a halt to new investments came after partner exits. This report suggests that cost discipline is now reaching senior investment ranks at larger firms.
First-order effects
- Large VC firms lose senior investors through voluntary departures and removals while operating with leaner teams and less funding.
- Departing partners who form new firms shift some investor relationships and deal-sourcing capacity away from established platforms.
Second-order effects
- Remaining firms are likely to concentrate responsibility among fewer partners and be more selective about new investments, reinforcing the slower deployment environment described in earlier assessments of the VC slowdown.
- New firms started by former partners add fundraising competition even as established firms are cutting costs, making track record and limited-partner relationships more consequential.
Third-order effects
- If departures persist, venture capital may become more bifurcated: durable multi-partner platforms retain capital and support functions, while experienced investors increasingly operate through smaller independent firms.
- The episode points to a reset in the sector's partnership model, where long tenure at a single firm is less assured when fundraising and portfolio conditions deteriorate.
The trend: Venture capital's downturn is shifting from reduced fundraising and investment activity toward organizational restructuring and partner-level churn.