Devin Parekh has spent 26 years navigating the volatile currents of the venture capital landscape, maintaining a leadership position at the heavyweight investment firm Insight Partners. While the modern venture capital industry has become increasingly characterized by high-profile social media presence and constant podcast appearances, Parekh and his firm have remained conspicuously low-key. This deliberate distance from the "influencer VC" archetype has not hindered the firm’s reach; with $90 billion in assets under management (AUM), Insight Partners has solidified itself as a central player in the global technology ecosystem.
During a recent appearance at TechCrunch’s StrictlyVC event in New York, a forum designed to bridge the gap between institutional investors and the burgeoning startup community, Parekh offered a rare, candid look into the firm’s operational philosophy. The discussion covered a wide spectrum of the current market climate, from the firm’s strategic bets on frontier AI labs like OpenAI and Anthropic to the sobering realities of liquidity, portfolio management, and the cyclical nature of venture-backed valuations.
The Philosophical Divide: Growth vs. Hype
In an industry currently obsessed with the perceived existential risks of artificial intelligence, Parekh offers a pragmatic counterpoint. Addressing the recent public concerns raised by high-profile AI researchers regarding self-improving models, Parekh suggests that the industry’s alarmism often overlooks the tangible, immediate benefits of the technology. As a board member of NYU Langone, he cites the direct application of machine learning in healthcare as evidence of the technology’s transformative potential.
"There’s a risk some non-state actor gets access to an open-source model and creates a biological weapon," Parekh noted. "But there’s an even higher probability we get a massive decrease in the time it takes to develop new drugs and cure diseases. I’ll take that bet."
For Insight Partners, the strategy is anchored in the belief that AI is a necessary tool to solve structural economic problems, particularly in an aging global population where the supply of healthcare professionals cannot keep pace with demand. By focusing on practical, sector-specific AI applications, the firm positions itself as a long-term builder rather than a reactive player in the current hype cycle.
Portfolio Strategy in a High-Rate Environment
Insight Partners has historically maintained a flexible, temporal approach to capital allocation. Unlike firms that adhere to rigid geographic or stage-based mandates, Insight adjusts its strategy based on macro-economic indicators. Parekh points to a notable slowdown in the buyout market, a sector that has been hampered by elevated interest rates, constrained debt markets, and compressed exit multiples. Notably, the firm has not engaged in a major buyout transaction since 2024.
The firm’s approach to venture capital has also undergone a tactical shift. Parekh highlights that the current environment, characterized by rapid valuation increases with minimal incremental data, mimics the unsustainable trends of 2021. To mitigate the risk of overpaying, Insight has increasingly turned toward earlier-stage investments. By writing smaller checks—typically in the $20 million to $25 million range—the firm retains the ability to "double down" on successful assets as they demonstrate traction.
This strategy was exemplified by their early investment in the cloud security platform Wiz. By participating in the Series A round and maintaining consistent follow-on support, Insight achieved a significantly higher return than a one-off investment would have yielded. Furthermore, this approach provides a built-in safety net: should a high-conviction early bet fail to materialize, the impact on a fund of Insight’s scale remains negligible.
Global Talent and the Geographic Concentration of AI
While the democratization of remote work initially suggested a shift away from traditional tech hubs, Parekh notes a distinct "return to center" regarding AI infrastructure. He observes that while vertical-specific AI—such as financial services technology—remains geographically dispersed, the core of foundational AI infrastructure remains heavily tethered to San Francisco.
This reality influences the firm’s recruitment and deal-sourcing efforts. Even when Insight competes for top-tier talent in secondary markets—such as their recent bid for the Swedish AI legal-tech company Legora—the firm acknowledges the intensifying competition. Losing the Legora deal to General Catalyst serves as a reminder that even for an established firm, the ability to articulate a unique value proposition remains the deciding factor in a crowded market.
The "Rivalry" Investment Model: OpenAI and Anthropic
One of the most controversial shifts in modern venture capital is the move away from exclusivity. Historically, investing in competing companies was considered a taboo that could alienate founders and invite conflicts of interest. Insight Partners, however, holds stakes in both OpenAI and Anthropic. Parekh argues that this shift is a reflection of the reality that these firms are no longer small startups; they are massive entities requiring billions in capital that transcend the capabilities of single-firm funding.
At the Series A and B stages, Insight maintains strict information-sharing restrictions to protect the competitive integrity of their portfolio companies. However, as companies grow into multi-billion-dollar institutions, the role of the investor shifts. "Once you’re at a later stage, off the board, not driving governance, you’re just buying a great stock," Parekh explained.
Liquidity and the Responsibility to LPs
A critical theme of the discussion was the mounting pressure on venture firms to demonstrate liquidity. Parekh noted that many funds raised between 2021 and 2023 have failed to return capital to Limited Partners (LPs), a failure that may prevent those firms from successfully raising future vehicles. Insight Partners has prioritized this, returning more than $20 billion to LPs over the last two years through strategic sales and IPOs.
The firm’s focus on DPI (Distributed to Paid-In Capital) underscores a shift in industry expectations. While investors are often tempted to hold winners in anticipation of further growth, Parekh emphasizes the importance of de-risking positions. "Nobody complains about a 10x that stays a 10x, but if it drops to 5x, people ask why you didn’t sell," he noted.
Looking Ahead: The IPO Pipeline
Looking toward the next 18 months, Parekh anticipates a wave of IPOs from the industry’s largest players. With SpaceX, Anthropic, and OpenAI expected to hit the public markets, the industry faces a potential realignment of growth expectations. Public market investors, accustomed to the hyper-growth of these entities, will eventually have to reconcile these valuations with more traditional, long-term growth metrics.
For Insight Partners, the mission remains consistent: finding the best founders in the best markets, regardless of the noise. Whether through a $5 million check in an early-stage company or a nine-figure buyout of a cap table—as seen in their successful handling of Armis—the firm’s 26-year history suggests that performance, not public perception, remains the ultimate metric of success.
As the venture capital industry moves through another cycle of boom and correction, Parekh’s commitment to disciplined, diversified, and liquidity-focused investing offers a template for stability in an otherwise volatile sector. While the "loud" VC may capture the headlines, the "quiet" strategy employed by Insight Partners continues to move the needle on a global scale.
