Ben Lerer, managing partner at Lerer Hippeau, warns that mid-sized venture capital firms are facing an uphill battle for survival. He predicts a growing divide in the VC landscape, with funds like Thrive and a16z attracting most investments, while smaller, specialized firms thrive. Lerer's insights come amid reports of declining active venture firms in the U.S. as many struggle to secure funding post-2021's investment boom. Notably, Foundry Group recently announced its closure, illustrating the precariousness of mid-tier firms in today's market.