Hey there!

It’s Sparsh here!👋 

Geoff Woo posted one tweet and the venture industry got uncomfortable. 💬

His prediction: most funds will be algorithmic within 24 months, agents will replace 90% of what associates and principals actually do, and the VCs who cannot build companies will not survive the filter. 🔮

Whether you agree or not, the math behind it is hard to argue with. 🎯

Let’s dive in to know more.🚀

🔪 What Agents Actually Replace

Woo is specific about this and he is not wrong. Here is what is already being automated:

🌐 Deal sourcing: network graph analysis finds warm leads faster than any analyst cold-calling founders

📂 Due diligence: automated data mining across financials, team history, market size, and competitor landscape

📡 Portfolio monitoring: real-time dashboards replacing quarterly check-in calls

🔁 Pattern matching: scanning 10,000 deals in the time a human reviews ten

The honest question is not whether this is coming. It is what is left after it arrives. 🤔

💸 The 2% Problem

Let us talk about the management fee.

The traditional 2% management fee on a $100M fund generates $2M a year. That covers partners, associates, principals, analysts, office space, and travel. It made sense when humans were doing all of it. 🏢

Now run the same math with a two-partner fund and a $2,000 monthly API bill.

The overhead argument for 2% is gone. LPs are going to notice. 💡

🧬 What the Lean Fund Actually Looks Like

Two partners. One focused on sourcing and founder relationships. One focused on portfolio and operations. A suite of agents handling everything in between.

No associates. No principals. No hierarchy built to justify the fee structure.

The fund that wins in 2028 does not look like Sequoia at smaller scale. It looks like a software company that also writes checks. 🚀

🛡️ The Only Moat That Survives

Woo's real point is this. The VCs who survive are the ones who can actually build companies, not just write checks and send intros.

Three things an agent cannot replicate:

1. Conviction in a contrarian bet: the ability to back something the market thinks is wrong, and hold that view under pressure 🧠

2. Founder trust at the zero moment: the call a founder makes at 11pm when everything is falling apart. That is a human relationship, not a transaction 🤝

3. Pattern recognition from operating: having built, failed, and rebuilt yourself. No model trains on what that actually feels like 💪

📢 What This Means If You Are an LP

You should be asking your GPs uncomfortable questions right now.

If the answers are vague, that is your signal. 🔔

🎯 The Bottom Line

The bloodbath Woo is describing is not about AI taking over venture. It is about overhead that was never justified finally getting exposed.

The lean fund is not a threat to great investors. It is a threat to average ones who built careers on access and information that AI just made free.

The 24-month clock is already running. 🕐