Shift in Venture Capital: Exits, Track Records and the Solo GP Boom The motivations stem from a combination of market dynamics, growth ceiling concerns, and changing preferences among limited partners (LPs).

A wave of senior general partners (GPs) leaving large venture capital funds to launch independent firms is underway in India, highlighting a shift in early-stage investing. The motivations stem from a combination of market dynamics, growth ceiling concerns, and changing preferences among limited partners (LPs).

Several notable exits have been reported. Shailesh Lakhani, formerly Managing Director at Peak XV Partners (previously Sequoia Capital India), is setting up an early-stage fund and may partner with Harshjit Sethi, another former Peak XV MD who recently stepped down.

Ashish Dave, who led Mirae Asset Venture Investments in India, is in discussions to launch a multi-stage, growth-focused fund after leaving Mirae earlier this year. Sameer Brij Verma, previously at Nexus Venture Partners, has already raised about USD 150 million for his solo GP vehicle, Northpoint Capital. In his announcement of the fund, Verma wrote that his vision was to "stay nimble, founder-first, and back companies early while supporting them all the way through scale."

Piyush Gupta, another ex-Peak XV MD (though not part of the investing team), launched Kenro Capital, which focuses on secondaries. Gupta noted that "secondaries are becoming an essential piece of India's venture ecosystem," adding that his new firm would provide liquidity to founders, employees, and early investors, while also creating fresh opportunities for LPs.

These moves come against a backdrop of sparse large exits in India and the observation that while artificial intelligence has powered excitement globally, much of the spillover in terms of outsized returns has yet to materialise locally. For many veteran GPs, that has meant difficulty in achieving very high rates of return from large funds, especially as fund sizes increase and the tail risk becomes harder to manage.

Lakhani's track record includes investments in Truecaller, Ixigo, Healthkart, and 1mg, while Sethi has backed fintech and enterprise players like BharatPe and Darwinbox. Verma was an early supporter of Postman and Infra.market, and Dave's portfolio at Mirae included Zomato, BigBasket, Shadowfax, and Unacademy. Their histories give credence to their ability to raise capital independently.

Several forces are driving this shift. Large funds face increasing challenges in delivering outsized internal rates of return, particularly in a market where fewer companies are achieving mega-scale exits. At the same time, within established firms, senior partners often hit ceilings—whether in compensation, decision-making autonomy, or in deploying capital in a way that reflects their conviction. Going solo offers more control over thesis, portfolio, pace, and structure. LPs, too, are shifting preferences.

Shekhar Kirani of Accel India said in an X post, "The next wave of VC in India will come from emerging managers who are closer to founders and sectors. Smaller funds, sharper focus, deeper conviction."

The rise of specialist and niche funds is another reason for the breakaway trend. As markets mature, value lies in focusing on sectors, stages, or themes that may be underserved by large generalist funds.

This is also why the solo GP model is finding traction. Vaibhav Domkundwar of Better Capital said, "Solo GPs are deeply involved with founders and can move faster without the layers of committees. The conviction levels are higher because the GP is personally accountable for every decision. This is a model designed for sharper focus, faster cycles, and stronger relationships."