This new twist on venture capital is transforming investing

In recent years, Venture Capital-as-a-Service (VCaaS) has become more predominant since it offers more flexibility than the traditional VC model. It is designed perfectly for corporations, family offices, and sovereign wealth funds that want to engage in startup investment without managing a full-fledged VC team. Let’s understand the mechanics behind VCaaS and why corporations are embracing it. READ MORE

AI venture funding continued to surge in third quarter, data shows

As the rush towards AI-related companies continues on Wall Street, data from Crunchbase showed on Monday that the sector enjoyed a bulk of venture funding in the third quarter, with names including Anthropic raking in billions.

BY THE NUMBERS

Global venture funding in the third quarter increased 38% year-over-year to $97 billion, increasing slightly from $92 billion in the second quarter. READ MORE

Tesla exec speaks out on Elon Musk's $1 trillion compensation package: 'There aren't any other people out there like Elon'

Tesla CEO Elon Musk and Oracle co-founder Larry Ellison have recently engaged in an unofficial battle for the title of the wealthiest person on the planet, with each amassing a net worth of around $400 billion.

But following the news of Musk's eye-popping compensation package proposal, he may soon run away with that title with little opposition. READ MORE

Can I Invest My 401(k) Account in Private Equity?

On August 7, 2025, the White House issued Executive Order 14330, Democratizing Access to Alternative Assets for 401(k) Investors (the Order), directing the Department of Labor (DOL) to issue guidance that facilitates investment in “alternative assets” by participants in 401(k) and other defined contribution (DC) plans. The stated goal of the Order is to give all retirement plan participants access to the same benefits of alternative investments—potentially higher returns and diversification of risk—that are already enjoyed by large investors and governmental plans.

Although many commentators have focused on the risks of allowing individuals with limited investment experience to direct their retirement savings into, say cryptocurrency, the Order is in fact both broader and narrower than that example. It is broader in that it covers plan investments not only in digital assets such as crypto, but also private equity and debt, precious metals, real estate, infrastructure projects, and lifetime income insurance products. It is narrower, however, in that the Order itself (as opposed to its statement of purpose) focuses almost exclusively on investment through an asset allocation fund, such as a target date or lifecycle fund. This article will address questions raised by the Order. READ MORE

As the $11 Trillion Industry Stalls, Experts Warn of Uncertain Future

The Federal Reserve cut rates again, but analysts say cheaper money won't fix private equity's (PE) massive problem. Traditionally, they'd take companies public on the stock market for huge profits, but that exit door has narrowed shut, down 46% in 2024 from the previous five-year average.1

"Private equity firms are increasingly trading assets among themselves or accepting lower returns," Kevin Khang, Vanguard's senior international economist, noted in recent analysis.2 "The $11 trillion industry's aggressive use of leverage, which once defined the model, is now being reined in, forcing a strategic rethink." READ MORE

Trump paves way for $14B TikTok deal that puts US investors in the driver's seat

President Donald Trump has finally cleared the way for a tentative deal that would keep video-sharing app TikTok operating in the US through the creation of a new, separate American-run entity.

After months of delays, the order gives some shape to the deal and confirms that under the new framework, the US-based arm of TikTok will be controlled by large American investors, who will own 80% of the entity, with ByteDance retaining 20%.

The president said that Oracle, Michael Dell and Rupert Murdoch will be involved. READ MORE

SEC Working with DOL to Develop ‘Guardrails’ for Private Equity in 401(k)s

The Securities and Exchange Commission (SEC) will work with the Department of Labor (DOL) to develop protections for workplace retirement plan participants interested in private market investments, SEC Chairman Paul Atkins told Fox Business in a live interview on Tuesday.

The Trump administration’s plan to open 401(k) retirement accounts to private market investments—as per his Aug. 7 executive order—seeks to open up far greater access to opportunities that have traditionally been restricted and available only to high net worth investors and pension funds. READ MORE

The Convergence of Insurance, Private Capital and Asset Management Is Likely To Continue

Although the capitalization and prudential regulation of insurers is complex, the economic essence of an insurance company is simple.

A company is established with capital and regulatory licenses. It agrees to make future benefit payments and/or cover the economic cost of certain risks in return for receiving premiums. Because of the time lag between the receipt of premiums and ultimately having to pay out — which can be decades — if the company is well run, it will enjoy an ever-increasing “float” of money. READ MORE

Employers ready for private market investments in DC plans

A new survey from Empower shows that a growing number of employers are preparing to offer private market investments – such as private equity, private credit, and private real estate – within defined contribution retirement plans.

The findings reflect a broader shift in the retirement landscape, with plan sponsors, advisors, and participants expressing increased interest in expanding access to these asset classes. READ MORE

Why VCs Are Funding Founder Resilience And Personal Development

For decades, venture capital has been synonymous with chasing unicorns—those rare startups valued at a billion dollars or more. But a new generation of investors is rewriting the script, prioritizing sustainable growth and healthier founders over high-stakes bets. At Chicago-based 11 Tribes Ventures, General Partner Kristina Chapple and Founder Mark Phillips are betting that a thriving founder creates a flourishing company. They are literally putting money behind that belief by dedicating 2% of every investment as non-dilutive capital for coaching, therapy, and personal development.

This founder-first approach is not only unusual in venture capital but also reflects a broader shift among emerging managers who emphasize founder support, resilience, and mental health. Instead of holding out for one or two unicorns, they aim to nurture more companies toward $100 million exits. As Chapple put it, “healthier founders lead to better returns.” READ MORE

VCs are still hiring MBAs, but firms are starting to need other experience more

The MBA-to-VC pipeline remains a very real thing. But that path is a little shakier than it once was, according to PitchBook reporting and new academic research.

Harvard placed 50 of its 1,004 MBA graduates into VC roles in 2024, with a median starting salary of $177,500. Stanford placed around 30 from its smaller class. More than 10,000 Harvard, Stanford, and Wharton MBA alumni currently hold senior positions at U.S. VC firms, PitchBook data shows. READ MORE

3 Ways Private Companies Are Reshaping Public Markets

Private markets are fundamentally transforming public markets in the United States. A surge in private capital flows is keeping some high-growth-potential companies private for longer, intensifying business competition among public and private firms, and causing more public companies to be taken private. This is shifting the investment landscape, but the effect is most acute on small-cap stocks because smaller companies have weaker fundamentals and fewer competitive advantages compared with larger firms. READ MORE

AI Is Gorging On Venture Capital. This Is Why ‘Physical AI’ Is Next

From venture capital to AI capital?

Silicon Valley continues to set the pace for global innovation. In 2025, scaleup investments reached $111 billion. Of that, a staggering $103.5 billion —  93% of the total — went into AI. In a nutshell, “VC investments” in Silicon Valley now essentially mean “AI investments.”

For every dollar invested in technology, 93 cents flow into AI. The artificial intelligence sector is literally gorging on venture capital. READ MORE

The Fed Rate Cut: A Tailwind for Private Equity in the Lower Middle Market

The Federal Reserve last week cut its benchmark interest rate by 25 basis points, lowering the federal funds rate to a range of 4%–4.25%. This move — the first since December 2024 — signals a shift toward monetary easing amid a softening labor market and persistent inflation.

Why the Fed rate cut matters for private equity

The rate cut is particularly impactful for private equity (PE) firms operating in the lower middle market, where deal economics are more sensitive to borrowing costs and capital availability. Here’s how: READ MORE

Why Private Markets Are Essential for Long-Term Investors

President Donald Trump’s recent executive order encouraging the use of private market assets in 401(k)s and other defined contribution plans is a potential game-changer for retirement plans across America.

It will prompt many questions and rulemakings from the Department of Labor and the Securities and Exchange Commission regarding transparency and fiduciary duty. But it also prompts the need to challenge, test and establish the benefits of private markets for DC plans in the first place. READ MORE

MBA Path to Venture Capital Weakens as AI Expertise Takes Priority

In the venture capital world, the once-ironclad path from a prestigious MBA program to a coveted associate role at a top firm is showing signs of strain. Recent data indicates that while MBAs continue to fill positions at venture firms, the industry is increasingly valuing operational experience, technical expertise, and sector-specific knowledge over traditional business school credentials. This shift reflects broader changes in how startups are evaluated and supported amid rapid technological advancements. READ MORE

RTW’s Wong: Biotech’s Five-Year Slump Is Over

The founder of RTW Investments believes biopharma’s five-year bear market is finally coming to an end.

In a client letter detailing August results, dated September 2 and obtained by Institutional Investor, the biotech hedge fund firm’s founder, Rod Wong, told clients, “We are increasingly optimistic that a biotech recovery could gain momentum. We continue to see a large number of asymmetric opportunities and are excited for a number of development-stage events and key new product launches this fall.”

Wong’s optimism is understandable. READ MORE

The top VC trends of 2025 and why they matter to founders

For founders, the latest trends don’t revolve around viral videos—unless venture capitalists say they do. Then those videos are the most important thing in the world.

That’s because savvy founders understand they need to know what VCs care about if they want to secure funding. Trends come and go, but if you’re not up to date, you’re falling behind. Thankfully, you don’t need to spend hours poring over social media content, news stories, or LinkedIn feeds to keep up. Fidelity Private Shares, in collaboration with Pitchbook, did the heavy lifting for you with their Top Venture Capital Trends Startups Should Watch in 2025 report. READ MORE

Venture capital roiled by H1-B visa changes

Venture capitalists are buzzing over the Trump administration's plan to charge $100,000 for H1-B visas, and it hasn't quieted down after White House clarification that these will be one-time fees on new applications.

The big picture: Most VC reaction seems to be negative. Both because of the financial burden it could place on startups, making it that much harder to compete with richer incumbents, and also because of the longer-term risks it presents to American innovation. READ MORE