By
Melia Russell
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In artificial intelligence's funding bonanza, a tiny circle of startups can stack billion-dollar rounds in quick succession, while everyone else fights for what's left.Less obvious is that the same squeeze is happening to the venture capitalists themselves."It's harder than ever to raise a fund as an emerging manager," says venture capitalist Nisha Dua.A trained lawyer and longtime builder at AOL, she's spent the last 12 years at BBG Ventures, an early-stage firm that backs female founders and entrepreneurs from diverse backgrounds. Business Insider recently named Dua to the Seed 40 list of top women investors.Just as funding has clustered around a small number of startup darlings, Dua said, investor capital is increasingly flowing to the biggest, best-known venture firms. Data supports the vibe. Experienced firms captured 91% of all capital raised in the first quarter of 2026, up from 74% for all of 2025, according to PitchBook. That was the highest share on record in PitchBook's dataset.Established managers have always had an edge with limited partners, who tend to prize brand names, long track records, and proven returns. But the latest data suggests that edge has become something more severe: a fundraising market that is practically closed to most emerging managers.Dua has lived through it. She closed her latest fund in the middle of a fundraising winter.
