Lerer Hippeau’s VC Pivot: Analyzing the Consumer to Enterprise Shift

Venture Capitalists Shifting Focus Away from Consumer Businesses

In a significant shift, venture capitalists are diverting their attention and investments away from consumer marketplaces, retail brands, and media companies. This week, it became clear that the venture capital firm Andreessen Horowitz, famous for its successful bets on platforms like Pinterest, Instacart, and Airbnb, has dissolved its core consumer team. Connie Chan, a longtime consumer general partner at the firm, has announced her departure. She is the last of the four general partners who led several consumer deals in 2021 to leave the firm or take on different roles. Notably, the firm has now shifted most of its focus towards artificial intelligence investments.