I’m going to make the case that early stage venture *firms* who want to lead seed/A Rounds can be generalists (in the sense they have a set of GPs who cover a broad set of areas collectively), but that as a VC you, now more than ever, need some degree of focus. This doesn’t mean every partner is so narrow as to invest in just a single type of startup. But it does mean that if you cannot articulate the handful of spaces you are trying to dominate (from an investment returns perspective), you are probably not going to succeed ongoing.

Why do I believe this is now a reality (and I didn’t necessarily when we started Homebrew a decade ago)?

while we’ve tended to apply a generalist lens to early-stage investing, when you take a step back, you don’t have to squint to see that our investments tend to cluster around a few key areas … we’ve approached the age-old question of whether to be specialists and generalists as a balancing act … But there’s no denying the value in specialized knowledge.

and finally the FRC transformation

we’ve naturally moved a few ticks closer to a more specialized approach over the last five years — especially as we’ve grown as a firm and added to our partnership.