VC 3.0 and James Currier’s startup manifesto reshapes investing

Venture capital has fundamentally transformed over the past three decades, evolving from a niche industry with just 150 investment entities in 1994 to today’s landscape of over 32,000 investor profiles on the NFX VC platform alone. This dramatic expansion, labeled “VC 3.0” by industry veteran James Currier, signals a shift into an era of “ubiquity” where venture funding has become a mainstream economic driver rather than a specialized financial instrument, creating new opportunities and challenges for investors and startups alike.

The big picture: The venture capital industry has entered what NFX’s James Currier calls “VC 3.0,” representing a third major phase in its evolution from a cottage industry to today’s ubiquitous investment ecosystem.

• Currier’s analysis identifies three distinct eras: the “cottage industry” phase, followed by the “software” phase, and finally the current “ubiquity” era beginning around 2022.
• This latest phase is characterized by technology being everywhere and unprecedented investor interest in funding innovation, particularly in AI.

By the numbers: The explosion in venture capital participation shows dramatic growth, with NFX’s platform alone hosting over 32,000 investor profiles compared to approximately 150 investment parties in 1994.

• This 200-fold increase in potential investors represents a fundamental restructuring of the venture capital landscape.
• The sheer volume of new participants is expected to drive significant changes to traditional venture funding models and practices.

What they’re saying: Currier predicts the emergence of specialized “community VCs” as a direct result of the industry’s expansion.

• “Every city, every university, every state and every nation will want VC entities to help them flourish economically,” he writes in his manifesto.
• He explicitly recognizes venture investing and startups as “an engine of prosperity” that communities will increasingly leverage for economic development.

Key predictions: Artificial intelligence is expected to transform venture capital operations and decision-making processes.

• AI could make investment sourcing, analysis, and support more efficient, potentially displacing some human roles in the venture ecosystem.
• These technological changes, combined with the industry’s expansion, may fundamentally alter startup funding strategies and investment approaches.

Why this matters: The democratization and expansion of venture capital could create more opportunities for startups outside traditional tech hubs while simultaneously increasing competition for deals and potentially changing how investments are evaluated and managed.