Venture capital is facing a reckoning. Ask Bradley Tusk, political strategist, early Uber advisor, and co-founder of Tusk Venture Partners. Having spent years inside the system, Tusk has said that the traditional VC model is not just failing—it’s “basically dead.” And he’s not just talking trash. He’s forgoing the pursuit of new capital altogether and opting for a new strategy: trading his expertise in return for equity.
This trend is greater than an individual shift—it’s a commentary on where early-stage investing is potentially going next.
Why Traditional VC Is Losing Its Advantage
No sugarcoating: old-fashioned venture capital is in a slump. Higher interest rates, discounted startup valuations, and a near standstill in IPOs and acquisitions have left many companies with capital they can’t invest, and even more portfolios that haven’t given a penny back to their investors.
Tusk doesn’t hesitate:
“VC as we know it is dead. And it has been for the last four years.”
That’s not merely economic pessimism. He also identifies the political environment as a significant headwind. Regulatory uncertainty, trade wars, and the dismantling of major federal agencies have disrupted long-term planning for both investors and founders.
“I just don’t know many serious economists who think a trade war is a good idea for anyone’s economy,” Tusk adds.
Leaving the VC Grind Behind
Tusk wasted years playing the old VC game—gathering funds, assembling portfolios, serving on boards. But eventually he realized that the model was seducing him away from the work he most loved to do: aiding founders in dealing with complicated regulatory and political issues.
So, rather than raising a fourth fund, Tusk went back to his roots. Now he uses his knowledge, particularly in dealing with politics and police, in return for equity.
The concept isn’t new to him. Uber, back in 2010, didn’t have the funds to pay for political advice, so they gave Tusk stock. He agreed and spent the next few years conducting campaigns to make ride-sharing legal throughout the nation. The wager paid off—big time.
“When I understood that I could as easily get onto cap tables and earn equity from startups I admire in exchange for my value,” he says, “the old model just did not make a lot of sense.”
Startups Need More Than Capital
What Tusk provides isn’t merely shrewd strategy—it’s survival. His CV is a hit list for a fixer: campaign director for Mike Bloomberg, deputy governor of Illinois, and political mastermind behind Uber’s initial fights with regulators.
Where startups tend to thrive or perish based on their capacity to manage policy, regulation, and public opinion, Tusk’s worth is evident.
“Most VCs are not capable—or interested in helping founders navigate political risk,” he says. “But in highly regulated sectors, that’s the difference between scaling and stalling out.”
Why Equity-for-Services Works
It turns out, Tusk’s new model isn’t only more rewarding—it’s frequently more profitable.
“I booked more cash with the equity-for-services model,” he says. “Although there’s less leverage than with a venture check, you retain 100% of the proceeds. With traditional VC, I’m obligated to pay back capital to investors, pay back fees, and then pay them 80 cents on the dollar.”
That is: fewer hoops, more ownership, and more upside.
Bigger Than Business
Tusk’s endeavors extend far beyond startups. Through his family foundation, he’s spearheading efforts to introduce mobile voting for U.S. elections. His anti-hunger campaigns have served up millions of meals, and he continues to be a busy writer, podcaster, and owner of his independent bookstore and event space on Manhattan’s Lower East Side.
This larger mission is indicative of Tusk’s vision for making a difference where it counts—whether in government halls or the pitch slides of high-growth startups.
Rethinking the Rules
With venture capital ongoing, Tusk’s shift is a powerful reminder: when established models no longer apply, you don’t need to go along. You can create a new playbook.
For new ventures trying to steer the stormy waters of regulation in today’s world, having a person like Bradley Tusk on their side might be more valuable than a sumptuous cheque.
