Big AI Bets Divide Venture Capital, Leaving Smaller Funds Behind
TL;DR
Early last year, venture capital firm Felix Capital set out to raise $600 million for its next fund, touting previous investments in fitness-machine maker Peloton Interactive Inc. and food-delivery service Deliveroo. But investors want to see returns from older funds before they commit new capital, and Felix is still $150 million short of its target, according to a person with knowledge of the matter.
Nauti's Take
The opportunity belongs to small specialist funds: when capital concentrates in a handful of AI mega deals, entire niches stay underfunded and cheap to claim. The risk is the feedback loop, because without exits from older funds no fresh money arrives, and Felix Capital is still 150 million dollars short of target.
For founders outside the AI core that means longer rounds, harder terms, and more weight on real revenue than on story.
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