VC Is Becoming PE

By ClimeNow · May 2025 · 6 min read

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VC is mutating.
The traditional “25 bets → 2 unicorns” playbook is getting replaced by an operator-style, control-seeking, PE-lite strategy.

As Guillermo Flor points out, the world’s most influential VCs — Lightspeed, a16z, Sequoia, General Catalyst — are shifting their models:

✅ Becoming RIAs
✅ Launching evergreen or crossover funds
✅ Building, acquiring, and rolling up companies
✅ Acting more like Blackstone than benchmark

This isn’t bad news. It’s a wake-up call — especially for ClimateTech and DeepTech founders.

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Venture capital is evolving.
The new model looks a lot less like early-stage roulette and a lot more like operator-driven private equity.

As Guillermo Flor points out, top firms like Lightspeed, a16z, Sequoia, and General Catalyst are turning into RIAs — Registered Investment Advisors.

Why does that matter?
Because RIAs can:

• Buy late-stage equity (a.k.a. secondaries)
• Acquire entire companies
• Actively manage portfolios like PE firms
• Rewire old assets with AI
• Build evergreen fund structures

This isn’t a trend. It’s a new playbook.
And if you’re building in ClimateTech or DeepTech, here’s how to not get left behind.

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💡 First, What Are Secondaries?

Secondaries = existing shares sold by insiders (founders, early employees, existing investors) to new investors.

Unlike a primary round (where new shares are issued and capital enters the business), secondaries create liquidity without diluting the cap table.

In a world where startups stay private longer, secondaries are:

• A way for founders to de-risk personally before exit
• A tool for new investors to build ownership without waiting for IPOs
• A signal that your startup is mature and stable enough for longer-term positions

📈 The secondary market is projected to hit $100B+ by 2025. You need to be part of that conversation.

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🛠️ 4 Actions ClimateTech Founders Should Take Now

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1️⃣ Make Your Company “Secondary-Ready”

VCs are no longer just betting on early-stage momentum. They’re building long-hold, cash-generative portfolios.

What secondary buyers look for:

• Clean, auditable financials
• Predictable cash flows or contracted revenue
• Healthy cap table logic (no dead equity, no chaos)
• Founder vesting aligned with long-term outcomes

🔧 ClimeNow fix:
→ Use our Readiness Scan to flag secondary blockers
→ Prioritize governance, clarity, and milestone-based liquidity terms in your next round

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2️⃣ Use AI as a Strategic Multiplier

These PE-style funds aren’t just investing—they’re transforming.

Whether you’re in energy, grid tech, mobility, or industrial automation:

• Show how your product collects and learns from operational data
• Map out where AI reduces cost or increases margin
• Frame your GTM or ops model as AI-rewirable (less headcount, more compounding)

🔧 ClimeNow fix:
→ We embed AI-readiness assessments in your execution roadmap
→ Frame your company not just as “green” but as “automatable”

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3️⃣ Plan Your Liquidity Strategy Early

Don’t wait for an IPO.
Founders who manage their personal liquidity smartly stay sharper and raise better.

📌 How to structure smart secondaries:

• Include a founder liquidity carve-out in your Series A/B negotiations
• Keep 5–10% of each round open for structured secondaries (existing shares, not new dilution)
• Negotiate milestone-based liquidity triggers, not vague promises

🔧 ClimeNow fix:
→ We advise on secondaries structure during Capital Fit planning
→ We align your milestones and governance with future liquidity events

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4️⃣ Think Like a Platform, Not a Product

VCs today want to own ecosystems, not apps.

This means:

• Connect your product to the broader value chain (e.g. DERs → grid ops → real estate)
• Partner up the stack and down the stack
• Show you can roll up your niche (acquire competitors, integrate adjacents, own distribution)

🔧 ClimeNow fix:
→ Our Capital Fit Blueprint shows if you’re VC-worthy, PE-worthy—or both
→ We map platform potential into your funding and execution roadmap

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🧭 TL;DR: What to Do Now

The VC game has changed. And if you’re building in ClimateTech, you’re right at the center of what this next capital cycle is about.

Here’s how to stay ahead:
✅ Be secondary-ready
✅ Build an AI-leverage story
✅ Treat liquidity like a strategy, not a hope
✅ Think platform, not product
✅ Align funding paths with execution realities

VC is no longer about getting lucky. It’s about de-risking, rewiring, and compounding.

ClimeNow helps you raise with clarity—and exit on your terms.

🎯 Ready to build your Capital Fit and liquidity strategy?
→ Book a free QuickScan now → [Insert CTA link]