Luca Prosperi

LegacyCo firms buy every innovation. NewCo needs just one: coherence. LegacyCo acquires hundreds of digital companies. Invests billions in AI. But the bigger they grow, the less coherent they become. The very act of becoming everything makes it impossible to be anything with excellence. Talent flows to returns, not bureaucracy. And returns increasingly flow to coherence. The Coherence Premium Each acquisition adds another translation layer. Each platform requires another governance committee. Their data exposes the truth: massive AI adoption, minimal usage. When Zhang Ruimin eliminated 12,000 managers at Haier and replaced them with 4,000 autonomous micro-enterprises, revenue doubled from $20B to $40B. Not because he added capabilities. Because he removed friction. The Accountability Arbitrage LegacyCo celebrates carrying billions in indemnity insurance. But this "absolution as a service" model amplifies their fundamental weakness. When you sell accountability arbitrage, you attract clients who want to outsource responsibility, not build capability. The very clients who need transformation most seek protection from it. NewCo doesn't need billion-dollar coverage because they're not in the absolution business. Judgment as Architecture Distributed judgment isn't about empowerment. It's about velocity. NewCo: Teams own P&Ls. Engineers deploy without approval chains. Authority follows expertise, not org charts. LegacyCo: Information flows up. Decisions flow down. By the time judgment reaches information, the moment has passed. Coherence rewards high-variance contributors; those whose impact scales with autonomy. Their talent doesn't leave for better titles. They leave for the ability to act on what they know. The Depth Advantage Markets increasingly reward depth over breadth. LegacyCo builds broader moats. NewCo builds deeper ones. LegacyCo's advantages global scale, regulatory expertise matter less when clients need answers in hours, not weeks. NewCo doesn't try to out-LegacyCo LegacyCo. They change what strategic value means. Not better video stores but streaming. Not faster consulting but continuous intelligence. Speed beats scale. Coherence beats capability. Markets move faster than managers. Always. LegacyCo will keep acquiring. Keep growing. NewCo needs only one advantage: coherence. The market has already started deciding. (Full post sent to newsletter subscribers)

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Why I Don't Sign NDAs for Early-Stage Founders — And Why Founders Shouldn't Ask Your idea is your baby. I get it. But for VC, asking for an NDA before sharing that idea isn't protecting your future - it's limiting it. In my latest article, I break down why NDAs create more problems than they solve for founders seeking early-stage funding. I explain why VCs structurally cannot sign them (reviewing 1,500+ decks annually makes this impossible), why they signal inexperience rather than caution, and most importantly - why your execution matters infinitely more than your idea. If you're a founder worried about idea theft, this perspective might change how you approach investor conversations forever. I explain why trust is the real compounding currency in venture capital - not legal protection.

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Klarna’s IPO is more than a fintech success story—it’s a bellwether for European tech’s resurgence on the global stage. It shows that ambitious European businesses can attract blockbuster global financing, compete with U.S. incumbents, and scale from niche niche startup to mainstream challenger. While profitability and competition remain headwinds, the IPO paves the way for richer fintech innovation, more IPOs, and further confidence in European tech.

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The VC secondary market is on fire. But many LPs are rushing in without fully appreciating the risks. VenCap International plc has been active in VC secondaries (LP positions only) since 1987 — and this is one of the hottest markets we’ve seen. In the first half of 2025 we reviewed $6.5bn of secondary VC deals — a 41% jump from the $4.6bn we saw in the same period last year. This includes both GP-led and LP-led deals. Here are 4 lessons we've learned from nearly 40 years of buying secondaries: 1️⃣ Power law still rules – a few companies will drive most returns. 2️⃣ Quality over discount – our best deal was bought at a premium to NAV. 3️⃣ Know the valuation policy – different VCs can value the same company very differently. 4️⃣ Factor in manager behavior – holding winners vs. selling early can make or break returns. VC secondaries ≠ PE secondaries. The risks are different — but for LPs who can access the right deal, at the right price, the rewards can be exceptional.

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