Ben Lerer, managing partner of one of New York’s most prominent seed-stage venture firms, Lerer Hippeau, shared some predictions with Fortune’s Leo Schwartz.

He believes that venture firms will continue to see a bifurcation as the money poured in is mostly in the main funds like Thrive and a16z, as well as in smaller more funds.

“Where you go to die is somewhere floating in the middle, managing a few billion dollars, and not doing anything well,” he told Schwartz.

While a few billion dollars is certainly not change, many companies are struggling to raise since the end of spending in 2021. The Financial Times also reported earlier this month that the number of active venture firms in the US has begun to decline while the cash flow of only the top names. Perhaps the biggest example of a big-name VC firm announcing in 2024 that this shutter is the Foundry Group.