Meet Aakar Vachhani, Managing Partner at Fairview Capital

Aakar Vachhani

In this month’s LP feature, we sit down with Aakar Vachhani, Managing Partner at Fairview Capital, to explore his personal journey, professional evolution, and insights into the venture capital landscape. From growing up in a multi-generational household shaped by immigration and resilience, to building a career rooted in curiosity and conviction, Aakar shares thoughtful reflections on the changing dynamics of emerging managers, the impact of AI, and the importance of relationships in venture investing.

Judy: Tell us about your upbringing and how it shaped your values.

Aakar: My dad and grandfather were born and raised in Burma, where my great-grandfather had moved from India in the early 1900’s. They were thriving until a military coup in the 1960s led to nationalization and the forced expulsion of Indian-origin families. My grandparents lost everything - business, savings, and stability. My great-grandfather walked to the border, and my grandmother sold her remaining clothes to get train tickets for my dad and uncle.

Eventually, they restarted life in India, which was foreign to my dad. He studied hard, became an engineer, and moved to the U.S. That spirit of perseverance and appreciation for opportunity deeply shaped our household. My parents were entrepreneurial - they ran a convenience store, and I spent much of my childhood there. We lived in a modest home with ten family members, which taught me collaboration, sharing, and a collective mindset. These experiences instilled in me a strong work ethic and a deep respect for education and opportunity.

Judy: What led you to venture capital, and how did your career begin?

Aakar: I’ve always been drawn to tech. I majored in economics and finance but spent a lot of time teaching myself coding and exploring new technologies. My first role was at a six-person fintech startup doing identity verification for banks. I did everything - coding, marketing, sales, even helping the CEO with his personal to-do list. It was chaotic but incredibly fun.

After the company was acquired, I joined Cambridge Associates, where I learned about the venture ecosystem and LP world. I worked on consulting teams and helped build a Quant team to analyze performance data more deeply. It was a rare opportunity to see the full ecosystem early in my career.

In 2008, I joined Fairview focused on the investments side. I didn’t realize at the time how perfect a fit it would be - entrepreneurial, focused on venture and emerging managers, and aligned with my interests in tech and investing.  

We were in the early stages of a major transformation in tech and cloud services were becoming mainstream, which dramatically lowered the capital required to start new companies. This shift was fueling the rise of seed-stage investing and a proliferation of new venture firms. To stay ahead of these emerging opportunities, it became essential for Fairview to have a physical presence in the Bay Area.  So, I moved to the Bay Area in 2016 to lead our West Coast presence and be closer to the action.  It was a leap, but it’s turned out to be a great decision. Being here has allowed me to build deeper relationships, stay close to innovation, and help Fairview stay at the forefront of identifying and supporting emerging managers.

Judy: How has Fairview’s strategy evolved over the years?

Aakar: Fairview has always had a strong foundation in supporting emerging managers, and we were actually one of the first emerging manager fund of funds in the industry. That DNA has shaped our approach from the beginning. When I joined in 2008, the venture landscape was much smaller and more concentrated. Most emerging firms were spinouts from tenured, brand-name managers, and because Fairview also had a tenured manager program, we had excellent visibility into those spinouts. 

But things started to shift dramatically around the time I moved to the Bay Area. Post-Great Recession, the rise of cloud computing changed the economics of startup formation. Companies needed less capital to get off the ground, which led to a boom in seed-stage investing and a proliferation of new venture firms. Suddenly, the number of emerging managers exploded, and the landscape became much more fragmented and diverse.

At the same time, there was a broader cultural shift: more young people were interested in venture careers, and the industry began to see more diversity in terms of background, perspective, and approach. That was a positive development, but it also meant we had to evolve our strategy to keep pace with the volume and complexity of the market.

Today, we look at thousands of funds a year, easily 10x what we used to. The dispersion of returns has increased significantly, which makes manager selection even more critical. We’ve remained committed to being an active investor and a trusted partner. Our name, Fairview, reflects our philosophy: we want to give firms a fair view, create a space where they feel comfortable being themselves, and build relationships that allow us to truly understand their potential.

Looking ahead, the rise of AI is ushering in another wave of transformation. It’s changing how companies are built, how quickly they scale, and how much capital they need. That’s going to further democratize startup formation and likely lead to even more fund creation. Our strategy will keep evolving, but our core commitment to identifying exceptional teams and being a long-term partner remains unchanged.

Judy: How do you evaluate fund managers today?

Aakar: Over time, as the venture ecosystem has grown more crowded and complex, we've had to refine our approach.  We have some initial screens that managers first have to pass through,  including: a) Fund size. As Fairview has scaled, our check sizes have grown, and it's become increasingly difficult to invest in smaller funds (<$50MM). It's not a reflection of the quality of the opportunities, but rather a practical constraint - smaller funds often can't absorb the size of investment we need to make, b) Team composition. We don’t invest in sole GPs. Venture is a tough business - building and scaling a firm is emotionally and operationally demanding. We believe in the power of diverse perspectives and shared decision-making. Having a team allows for better resilience, more balanced judgment, and emotional support during the inevitable ups and downs of fundraising and investing. Sole GPs face a unique set of challenges, and while many are incredibly talented, we’ve found that teams tend to have a higher likelihood of long-term success, c) Experience. While we’ve backed over 50 first-time funds, we don’t back people who are new to investing. We want to see a track record of thoughtful decision-making, deal sourcing, and portfolio construction – that can take many forms. Today, we’re seeing more spinouts from tenured firms, which is encouraging because those individuals often bring valuable experience and strong networks.

Beyond structural components, we’re increasingly focused on relationship-driven insights. With the rise of AI and automation, many aspects of fund evaluation are becoming commoditized. But what can’t be automated is the human element: who has real access to the best founders, who can build trust, who brings creativity and differentiated thinking. That’s why we lean heavily into our networks and the analog side of the business. We want to understand not just what a manager has done, but how they think, how they operate, and what kind of culture they’re building.

Ultimately, our approach is designed to help us identify managers who are not only capable of generating strong returns, but who align with our values and long-term vision for the ecosystem. We’re looking for partners, not just portfolios.

Judy: What impression do you hope to leave after a meeting with a fund manager?

Aakar: The impression I hope to leave is one of trust, respect, and genuine partnership. Whether or not we end up investing, I want fund managers to walk away feeling that Fairview - and myself personally - truly cares about their success and the broader ecosystem. We say “no” far more often than we say “yes,” but that doesn’t mean we’re indifferent. 

I also hope they see us as a resource. We’ve been in this space for a long time, and we’ve seen a wide range of fund structures, strategies, and team dynamics. If we can offer guidance, make a connection, or help them think through a challenge - even informally - I want them to feel comfortable reaching out. That kind of accessibility and openness is important to us.

Judy: Do you hold any contrarian views compared to the broader LP community?

Aakar: While many LPs believe the venture ecosystem is heading toward consolidation, I anticipate continued growth in fund formation. The rise of AI and other enabling technologies has lowered barriers to startup creation, which in turn will fuel the emergence of new venture firms and new sources of investment talent.

I also think the way LPs evaluate emerging managers has become overly risk-averse. There’s a tendency to look for the “perfect” manager with a polished pitch and a flawless track record. But venture is about backing people, not perfection. At Fairview, we’ve always believed in trusting our judgment and investing in teams with potential, even if their story is still evolving. One of our best-performing new funds came from a team whose pitch, team, and track record weren’t fully refined, but the strength of their relationship and experience was undeniable. That’s the kind of conviction we lean into.

Judy: What trends in venture are you excited or skeptical about?

Aakar: From an investment standpoint, the value creation potential today is enormous. AI is reshaping industries, enabling new categories of products, and unlocking efficiencies that were previously unimaginable. At Fairview, we’ve taken a diversified approach to investing across the AI stack—foundational models, infrastructure, middleware, and applications. That breadth gives us exposure to different layers of innovation and helps mitigate concentration risk. We’ve already seen strong liquidity and performance from some of our AI-related investments, and we’re currently working on a report to share more about our exposure and learnings.

But with all that excitement comes a healthy dose of skepticism. There’s a lot of hype in the market right now. Valuations are aggressive, and there’s a rush to chase deals without a clear consensus on where the most durable value will be created. Every firm has its own thesis, but the ecosystem hasn’t yet converged on a shared understanding of what the winning strategies will be. That uncertainty introduces some risk, but we think it can be mitigated by manager selection, and strategy and time diversification.

We’re also entering the early stages of AI agents - tools that can autonomously execute tasks, build products, and even orchestrate entire workflows. That’s going to be a game-changer. Imagine a founder who can deploy thousands of agents to build a company in a day. It’s coming. But it also raises questions about the ideal role of venture capital. If startups need less capital and fewer people, things like fund economics, portfolio construction, and the value-add of investors may change.

While I’m incredibly optimistic about the long-term potential of AI, I’m also cautious about the short-term noise and the need for thoughtful, disciplined investing. The firms that succeed will be those that combine deep technical understanding with strong networks, access to talent, and the ability to build trust with founders. That human element - relationships, creativity, judgment - is still irreplaceable, even in an AI-driven world.

Judy: What are your hobbies outside of work?

Aakar: I cherish time with my kids. My son is six and my daughter is three. We play board games, build Lego sets, and bike on weekends. My son is into golf, so we take lessons together. It’s fun to rediscover the sport through him. Golf is great because it’s challenging, meditative, and something you can play for life.

Judy: Do you envision your kids entering the venture or tech world?

Aakar: Right now, it’s less about steering them toward any specific career path and more about helping them build strong foundational skills. I want them to grow up with curiosity, creativity, empathy, and resilience—traits that will serve them well no matter what field they choose.

That said, I do think the world they’ll grow up in will be vastly different from the one we know today. With the pace of technological change, especially in AI, automation, and digital infrastructure, the lines between industries are blurring. The venture and tech worlds may not look the same in 20 years, but I imagine they’ll still be central to innovation and opportunity. If my kids are drawn to that space - whether as founders, engineers, investors, or something entirely new - I’d be thrilled to support them.

I grew up in a household that valued education and hard work, but I was fortunate that my parents didn’t pressure me to become a doctor or lawyer, even though that was common in our community. I want to offer my kids the same freedom: to explore, to fail, to discover what excites them. If that leads them to venture or tech, great. If it leads them somewhere else entirely, that’s great too.

What do encourage is that they develop skills that can’t be easily automated - like emotional intelligence, communication, collaboration, and creative problem-solving. Those are the qualities that will matter most in a world increasingly shaped by machines. And if they do end up in venture or tech, I hope they bring those human-centered values with them.

Judy: Where do you see yourself in 10 years?

Aakar: Hard to answer with certainty, especially given how fast the world is changing. But if I had to project forward, I’d say I still see myself deeply embedded in the venture ecosystem. This space is intellectually stimulating, constantly evolving, and full of incredible people. I’m a naturally curious person, and venture allows me to learn something new every day—whether it’s a breakthrough technology, a novel business model, or a founder’s unique journey.

At the end of the day, I’m committed to supporting exceptional people. Whether it’s through investing, advising, or simply being a connector, I want to continue helping others succeed. And I hope that in 10 years, I’ll look back and feel proud of the relationships I’ve built, the teams I’ve supported, and the impact we’ve had together.