A notable shift in venture capital is occurring as partners from established firms leave to start new funds or join emerging ones. Following his departure from Sequoia, Mike Vernal now collaborates with Sarah Guo at Conviction, which has raised a $230 million fund focused on AI. This trend highlights a generational change in the industry, with many partners seeking early-stage ventures and specialized investments, particularly in AI. As financial incentives wane in larger firms, more investors are pursuing independence. Experts predict an increase in such exits, signaling a significant transformation in venture capital dynamics.