LP stress is the hidden driver. With 12-13% of capital calls at smaller funds now paid late, fund survival requires finding companies that can generate liquidity within fund lifecycles.
AI Scale Timeline: 2-3 Years vs 7-10 years traditional (70% time compression)
Faster First Financing: 65% median age at first round (AI vs non-AI)
Capital to Repeat Founders: 53% (up from 21% in 2019, +152% increase)
The Reinforcing Cycle
AI Success Stories → More AI Investment → Faster Returns → LP Satisfaction → Re-Up → Cycle repeats → Capital concentration intensifies
Key Insight
This isn’t a trend—it’s a structural reality driven by LP liquidity demands.
The concentration is the feature, not the bug.
AI companies compress traditional 10-year paths to scale into 2-3 years. This makes AI the only rational allocation for funds facing LP pressure—not because VCs are “bullish on AI,” but because the alternative is fund failure.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
