Limited partners (LPs) in venture capital are bucking traditional diversification norms by concentrating heavily on OpenAI and Anthropic, drawn by their soaring valuations. Normally, LPs spread investments across multiple firms to manage risk, but the AI boom has created a rare convergence where many funds hold the same marquee companies. Experts Beezer Clarkson of LGT Capital Partners and Amit Bhatti of True Bridge say this concentration reflects venture capital's power-law dynamics, where a few mega-winners drive returns.
While the speed of consolidation raises concerns about risk, early-stage funds still maintain diversity. Clarkson notes the pace is fast but not alarming, while Bhatti sees AI as a transformative moment for venture capital, with attention and opportunities flowing to this sector like never before.
Source: TechCrunch Venture · Summarized by HeadlinesBriefing