The venture capital landscape is witnessing a notable shift as general partners (GPs) from large funds are increasingly departing to establish their own smaller funds. This trend reflects a bifurcation between smaller funds and large asset under management (AUM) funds, similar to the divide seen in the tech sector with major players like FANG. Limited partners (LPs) are reportedly favoring these smaller funds, attracted by the potential for 'large fund quality' with reduced fund sizes. Despite the challenges faced by emerging managers in proving their worth and securing investments, those who succeed are likely to focus on unique, non-consensus thesis-driven startups that may have been previously overlooked. Additionally, there are discussions around the ability of recent graduates to raise substantial amounts, such as over $100 million, despite lacking innovations or intellectual properties, raising questions about the motivations of the funds involved.