Thomas argues that structural shifts over the past two decades have fundamentally altered the role of venture capital. With companies staying private for far longer and the most dramatic compounding now occurring before an IPO, public markets no longer offer meaningful exposure to early-stage innovation. As he explains, the growth that once unfolded in public markets has migrated into the private domain.

Beyond return potential, Thomas highlights venture capital's role as a hedge against disruption. Portfolios dominated by public equities tend to be heavily weighted toward incumbents, many of which face accelerating technological displacement. He observes that allocating to venture may provide exposure to the companies likely to replace them.

On liquidity, Thomas points to the growing sophistication of the secondary market as a key enabler. With an estimated USD 2.5 trillion in unrealized value across venture-backed companies, secondary transactions are increasingly filling the role that public market trading once played. He notes that true price discounts in venture secondaries vary far more widely than commonly cited ranges suggest, creating meaningful opportunities for well-positioned buyers.

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