Deven Parekh on venture capital’s evolution over the past 30 years

As Insight Partners marks its 30th anniversary in 2025, Managing Director Deven Parekh shared his insights at the 2025 Upfront Summit on how venture capital has transformed over the decades.

Reflecting on the journey from the firm’s early days to its most recent $12.5B Fund XIII raise, Parekh highlighted the shifts in both the venture capital industry and the software and technology landscape. His perspective provides key lessons for investors and founders, especially as the industry faces new frontiers in AI.

“Over the course of the next 25 years, we’ve continued to fund these transitions — from client server to cloud to mobile to AI.”

Watch the full interview below:

Finding and scaling the winners

Parekh joined Insight Partners in 2003 when the venture capital landscape looked quite different. Today, with over $90B in assets under management, Insight’s growth mirrors the broader changes in the software industry. Initially focused on investing in software companies in transition, Insight has adapted its strategy as the market evolves — from client-server to cloud to mobile to AI.

“In the end, I believe the most important thing is each strategy contributing to our overall returns,” Parekh explained. This strategy was about more than just making early-stage investments — it was about ensuring long-term growth and backing companies with the potential to scale.

“A lot of these small checks have actually led to large gains. It gives us the ability with a large fund to see what’s working and double down in the things that are working really well,” Parekh said. “That’s what we call [this strategy] to our LPs: our double down strategy.”

“We really think of ourselves as a service provider”

Insight was one of the first venture capital firms to invest in a platform team to help portfolio companies get expert operational advice and scale quickly. In 2001, the firm launched Onsite under the helm of Managing Director Hilary Gosher, a dedicated team of 130 professionals to help fuel growth across multiple domains to help offer value beyond capital. “We spent a lot of time doing quarterly NPS surveys with our portfolio companies,” Parekh said.

Initially, the Onsite team worked across all stages of company growth, but over time, it became segmented to provide specialized support for early-stage, mid-stage, and late-stage companies. This shift allowed Insight to offer more tailored, impactful support to portfolio companies at different points in their growth journeys.

“We really think of ourselves as a service provider.” With a team that includes recruiting, marketing, and sales experts, Onsite can act as a critical resource for companies navigating their growth stages.

AI’s potential in the future of venture capital

“We think about AI in three ways: how we can use it at Insight for sourcing, how our portfolio companies can use it, and of course, where we’re investing,” Parekh noted. Insight’s approach includes deploying AI for operational efficiency and identifying AI-driven companies with the potential for significant growth.

However, despite the excitement, Parekh acknowledged the challenges of investing in AI, particularly around the inflated valuations seen in the space, mentioning that it has been “exceptionally difficult to find interesting things to invest in because of valuation.”

Parekh emphasized that AI wasn’t just about automation or lowering costs; it’s about improving the user experience. “We’re seeing companies that implement AI not only lower costs but actually improve customer satisfaction. It’s a powerful combination that has never really existed before.”

Investing in young investors

Parekh reflected on Insight’s next generation of investors, emphasizing that it isn’t just about providing feedback but also offering empowerment and responsibility. He spoke about how many senior leaders started as analysts at the firm, climbing to the role of managing director.

“You can only keep great people if you give them enough rope to go do their own thing,” Parekh said. “You have to give them more responsibility. You have to give them more economics.”

Parekh’s commitment to mentorship extended beyond those who made it at Insight. He took pride in staying connected with former colleagues, many of whom had gone on to lead their own ventures or thrive in different industries. “I’m proud to mentor those who didn’t make it at Insight. It’s important to remember that just because something isn’t the right fit at one company doesn’t mean someone isn’t great elsewhere,” he shared.

“At the end of the day, mentoring is about genuinely caring about the outcome and helping people grow,” Parekh continued.

As we look ahead to the next 10 years, Parekh remains optimistic about the future of the firm and the software industry. “I don’t think there’s been a day since I’ve been at Insight that I didn’t learn something new, whether it’s something about a new industry or a new type of deal structure.”

As the industry continues to evolve, Insight Partners remains committed to providing the capital, expertise, and mentorship that will help shape the next wave of software and technology leaders.