Convergence Funds: A Blueprint for Institutional-Scale Asymmetry
For decades, traditional venture capital has been the powerhouse fueling innovation and growth across industries. But this model is reaching its limits. The relentless chase for deal flow and conventional financial returns leaves many funds locked in a crowded market, chasing the same opportunities with diminishing advantage.
The landscape of capital and power is also evolving - shaped by new geopolitical realities, emergent governance structures, and shifting cultural narratives throughout the world. In this context, the Convergence Fund functions not merely as an investment vehicle, but as a strategic platform engineered to generate institutional-scale asymmetry.
It transcends traditional VC by combining capital with the tools of influence, governance, and security to create compounding leverage across multiple dimensions.
A Convergence Fund is a capital vehicle engineered to operate across multiple forms of strategic leverage simultaneously. While traditional venture funds focus narrowly on financial returns through equity in early-stage companies, a Convergence Fund is designed to consolidate influence across capital, media, governance, and infrastructure - treating these not as adjacent concerns, but as co-equal domains of investment.
At its core, it functions like a venture fund but with a much broader mandate. It allocates financial capital into high-leverage startups, but also builds and embeds itself within narrative ecosystems (via owned media, epistemic framing, and memetic strategy), regulatory and legal architectures (via jurisdictional partnerships or ownership), and sovereign-grade infrastructure (such as logistics, energy, or secure comms).
This is not capital as commodity; it’s capital as sovereign actor.
Rather than chase deal flow, Convergence Funds engineer environments where the most valuable ventures can emerge and scale under favorable conditions: conditions they’ve helped architect. This is what enables asymmetric returns over time: not through smarter bets, but through strategic prepositioning, multi-domain optionality, and deep alignment with emergent operating realities.
This is not just an investment model. It is a political and economic formation for the post-institutional era.
What is a Convergence Fund?
Why Convergence Funds Will Outperform Traditional VCs
Traditional venture capital operates on a constrained surface area. It competes in a crowded field, chasing similar deals with comparable tools: capital, founder networks, and pattern recognition. But as capital has become commoditized and information asymmetries have collapsed, traditional VCs have lost their edge. Today, financial returns are gated not just by what you invest in - but by the environment you’re operating within.
A Convergence Fund escapes these constraints by expanding its aperture. Instead of merely allocating capital within existing systems, it reshapes the systems themselves. By actively designing the narrative, regulatory, and infrastructural contexts in which its portfolio operates, it compounds its influence over time. It does not just back companies - it backs environments in which those companies can win.
This structural approach creates multiple layers of return:
Financial return from high-leverage equity.
Narrative return from controlling the stories that drive capital flow and cultural momentum.
Jurisdictional return from regulatory arbitrage and favorable governance positioning.
Strategic return from shaping the infrastructure and alliances that competitors must now move through.
These returns are nonlinear. While traditional funds optimize for deal selection, Convergence Funds optimize for system design. That is the asymmetry.
Over time, this approach leads to compounding advantages. By building sovereign-level optionality - across capital, media, law, and infrastructure - a Convergence Fund becomes harder to compete with, harder to copy, and harder to disrupt. It doesn't rely on access to the best founders. It becomes the place where the best founders want to build.
Most importantly, as the world destabilizes and post-institutional dynamics accelerate, Convergence Funds are positioned to thrive. Traditional venture was designed for a liberal, globalized world. That world is now fading. What’s emerging is more fragmented, more geopolitical, more narrative-driven. In that terrain, Convergence is not a niche: it’s the new default for those who wish to lead.
Why the Next Cycle Belongs to the Builders of the Physical World
Software ate the world. Now it's eating itself.
Venture capital, once a vehicle for industrial acceleration, has become a self-referential loop - funding marginal SaaS layers stacked on top of other SaaS layers, all competing for the same users in an increasingly synthetic attention economy.
But something deeper is happening. The rise of AI is not just a leap in productivity. It is an epistemic rupture. It will blur the line between signal and noise, truth and simulation, insight and hallucination. The informational layer of reality - our media, markets, and mental models - will become flooded, flattened, and strange.
In this coming wave of epistemic blur, clarity will be scarce. And humans, investors, and institutions will crave new forms of grounding. They won’t find it in more apps.
They’ll look for it in what’s real.
The next great fortunes - and the next strategic leverage points - will not come from one more AI wrapper or productivity tool. They will come from building the physical layer of the future: sovereign infrastructure, energy grids, logistics corridors, new cities, and new jurisdictions.
This isn’t a rejection of technology. It’s a reconnection of it - back to matter, motion, and meaning. It’s where capital meets steel, software meets sovereignty, and startups become civilizational actors.
Post-software investing means:
Allocating into operating realities, not just cap tables
Backing companies that control their supply chains, media stacks, and legal substrates
Building not just products, but places - environments with defensible alignment between technology, culture, and governance
We are entering a new era. It won’t be shaped by abstractions. It will be shaped by those who build the real world again - with precision, sovereignty, and leverage.
To operate in the post-software era is not to reject software (quite the opposite): it’s to recognize that the highest-leverage software will be in service of something harder, weightier, and real. That something is infrastructure with agency. Tangible systems that are not only built, but sovereign.
So what does this mean for capital allocators?
It means moving from startup arbitrage to reality arbitrage.
Invest where others won’t - not just in sectors, but in substrates.
It means allocating into:
Energy primitives: modular nuclear, microgrids, geothermal, and long-range transmission systems that enable geopolitical and operational independence.
Sovereignty tech: tools and platforms that enable self-governance, parallel legal infrastructure, and control over jurisdictional exposure.
Logistics and mobility: high-friction domains ignored by VCs because they don’t scale like software… yet they shape every supply chain and real-world system.
Construction and habitation: advanced manufacturing, next-gen building systems, and city-layer services for special jurisdictions and new settlements.
Agro-climate systems: not as legacy bets, but as engineered systems for autonomy, land use, and long-term human resilience.
These aren’t just sectors. They are the building blocks of the next civilization layer. And right now, they’re misunderstood, underpriced, and often outside the comfort zones of most funds.
Where to Allocate in the Post-Software Era
Software-first venture funds will increasingly lose their edge, just like the Empire State Building. The edge they once held - speed, scale, asset-light returns - will be flattened by commoditized AI, open source models, and replicable stacks.
As AI accelerates the pace of software creation, moats shrink. Differentiation blurs. Venture returns trend toward mediocrity… except for those who shift focus.
To win in this next era, funds must become more than allocators of capital. They must become architects of operating environments. That means building portfolios that don’t just fund companies: they shape trade zones, governance layers, and epistemic structures.
The physical world is not the past. It is the next frontier of asymmetric advantage. And those who see this shift early will capture the leverage others are too slow, or too afraid, to touch.
Why Software-First Funds Will Miss Out
The New Statesmanship
The liberal era trained investors to think in firm-sized units: companies, portfolios, quarterly returns. The future will not.
As institutions fracture, supply chains regionalize, and trust in centralized governance declines, a new category of actor will emerge: one that does not merely fund startups but builds sovereign systems. The post-liberal order won’t be managed by legacy governments alone. It will be negotiated, shaped, and governed by a new class of investor-builders who operate at the scale of jurisdictions.
These are not technocrats. They are statesmen.
The highest use of capital is not to earn a return: it is to create order. Coordination power. Environmental stability. The ability to write rules rather than merely play within them.
This is the power frontier that lies ahead for VCs willing to evolve: to deploy capital not into apps or features, but into entire logistics corridors, energy grids, real estate sovereigns, and cultural regions.
This is not fantasy. It’s already happening.
In Nevada, tech founders are attempting to negotiate municipal charters to build governance-aligned towns.
In Prospera and Próspero-like zones, jurisdictional arbitrage is being used to bootstrap new law and development logic.
In the Gulf, sovereign wealth capital is being redeployed into greenfield cities with new value systems embedded at layer one.
The key lesson: it is now possible (not easy, but possible) for private capital to build civic reality. That is The New Statesmanship.
Capital as Coordination
The question for next-generation fund managers is no longer “what will our portfolio look like?” - but “what will our territory look like?”
This new mode requires a shift in mentality:
From LP-GP structure to Sovereign Stack Design: jurisdiction, logistics, security, narrative, and capital must be architected together.
From returns optimization to Civic Architecture: designing entire districts where values, laws, and institutions reflect operator-aligned interests.
From market arbitrage to Governance Engineering: not just capturing value, but legitimating and institutionalizing it through parallel structures.