The recent trend of venture capitalists making unexpected moves within the industry has surprised many. Traditionally, venture capitalists tend to stay with their firms for the long term, especially at the partner or general partner level. However, there have been several high-profile instances this year of investors leaving their firms, starting their own ventures, or taking a break from investing altogether.
Keith Rabois’ decision to leave Founders Fund and return to Khosla Ventures in January was a significant departure that caught many off guard. This move was particularly surprising due to the nature of VC funds, which typically have 10-year life cycles. Partners have strong incentives to stay the course, as they may be considered a “key man” on a firm’s fund. If a key man were to leave, the fund’s limited partners would have the right to withdraw their capital. Additionally, many partners and general partners have their own money invested in their firms’ funds, further incentivizing them to stick around.
Despite these factors, it seems that high-profile investor moves have become more common in recent months. Just today, Vic Singh, one of the co-founders of Eniac Ventures, announced his departure from the firm he helped launch in 2009 to start his own venture. Singh joins a growing list of VCs who have recently left their firms.
In April, Ethan Kurzweil announced his departure from Bessemer Venture Partners after 16 years to launch his own early-stage investment firm. Kurzweil will be joined by Kristina Shen, who left Andreessen Horowitz after four years, and Mark Goldberg, who left Index Ventures after eight years. This move showcases the trend of experienced investors striking out on their own to pursue new opportunities.
Another notable departure in April was Chrissy Farr, who left OMERS Ventures to focus on her healthtech newsletter and writing a book about the power of storytelling in business. Farr had served as a principal investor and led the firm’s healthtech practice.
In March, Ethan Choi left Accel after six years to join Khosla Ventures. Choi will be focused on growth-stage investing at his new firm and has already backed companies such as Klaviyo, Pismo, and 1Password. Additionally, Social Capital fired partners Jay Zaveri and Ravi Tanuku in March due to a matter involving raising money for AI startup Groq. This incident highlights that not all recent VC moves have been voluntary or driven by a desire for change.
Furthermore, there have been instances of investors returning to their former firms. In March, Miles Grimshaw announced his return to Thrive Capital as a general partner after spending three years in the same position at Benchmark Capital. Grimshaw had originally started at Thrive Capital in 2013 and has backed notable companies such as Airtable, Lattice, and Monzo.
However, transitioning from an operator to a venture capitalist is not for everyone. Sam Blond came to this realization in March and decided to leave Founders Fund after being a partner for about 18 months. Blond expressed his intention to return to operating and has previously held roles at companies including Brex, Zenefits, and EchoSign.
The trend of venture capitalists making unexpected moves within the industry demonstrates that the landscape is evolving. While some investors are seeking new opportunities or starting their own ventures, others are returning to familiar ground or choosing to pursue different paths altogether. This fluidity in the VC ecosystem reflects the changing nature of the startup world and the diverse career paths available to investors.
