TLDR:
– Venture capitalists are shifting their focus from consumer technology to enterprise technology investments.
– Andreessen Horowitz’s core consumer team has dissolved, with many partners leaving the firm or turning to other roles.
– Lerer Hippeau, known for consumer bets on companies like Allbirds and Warby Parker, is now focusing more on enterprise technology investments.
– Managing partner Ben Lerer returned to Lerer Hippeau full time in 2022 after selling his media company, Group Nine, to Vox.
– This shift in focus reflects the changing landscape of the venture capital industry and the growing opportunities in enterprise technology.
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Venture capitalists are undergoing a significant shift in their investment focus, moving away from consumer technology and towards enterprise technology. This change was highlighted by the dissolution of Andreessen Horowitz’s core consumer team, with partners leaving the firm or transitioning to other roles. Connie Chan, a longtime consumer general partner at the firm, announced her departure, making her the last of the four general partners who led consumer deals in 2021 to leave or pursue different opportunities. The firm itself is now directing most of its investments towards artificial intelligence.
The transformation in investment strategy at Andreessen Horowitz prompted a closer look at other firms known for their consumer investments, such as Lerer Hippeau, a New York-based venture capital firm. Despite its early investments in successful consumer brands like Allbirds and Warby Parker, Lerer Hippeau is now shifting its focus towards enterprise technology. Managing partner Ben Lerer, who returned to the firm full time after selling his media company, Group Nine, to Vox in 2022, revealed that Lerer Hippeau is now putting more money into enterprise than consumer technology.
This shift in investment focus reflects the changing landscape of the venture capital industry. While consumer technology has traditionally been a popular investment sector, venture capitalists are recognizing the growing potential in enterprise technology. The rise of artificial intelligence and other emerging technologies in enterprise settings presents new opportunities for significant returns on investment. By shifting their focus to enterprise technology, venture capitalists like Andreessen Horowitz and Lerer Hippeau are adapting to these market dynamics and positioning themselves for future success.
