Prior research has shown that the venture capital (VC) industry is renowned for its homophily, regionalism, and cliquish nature. Research has also shown that venture capitalists (VCs) specialize their investments by geography and industry, and syndicate their investments in order to share both resources and risks. However, the venture industry has also experienced robust growth in the number of firms and capital under management. From 1980 through 2003 the VC industry grew from 89 to 919 firms and from $3.7 billion to $257.5 billion in capital under management. As a result, the author asks if the recent growth may have caused an insular industry to become fragmented, and if this fragmentation has resulted in a stratification of elite vs. non-elite firms.