Venture capital has evolved from a niche financing mechanism into a central pillar of the global innovation economy, managing $3.5 trillion in assets and backing more than 250,000 companies over the past two decades. Today, however, the model faces a period of significant transition, marked by slowing capital recycling, an uneven global distribution of scale-ups and the rapid reshaping of venture economics by artificial intelligence.

The Future of Venture Capital initiative brings together industry leaders to identify collaborative opportunities to strengthen the global venture capital ecosystem, fostering an environment that fuels innovation worldwide. This insight report, developed in collaboration with the Stanford Graduate School of Business Venture Capital Initiative, examines the structural pressures facing the industry and the institutional reforms required to address them.

Drawing on original data analysis and perspectives from leading general and limited partners, the report offers a comprehensive assessment of the structural shifts under way, setting out five strategic priorities to strengthen the industry and sustain its critical role in financing global innovation.