Venture capital firms are currently confronted with investment opportunities of which the inherent nature presents unprecedented challenges for their traditional functioning. The typical in-depth specialization of VC firms into one technology or industry is no longer sufficient to successfully evaluate these new opportunities. The capability literature suggests that the ability of a firm to enter a new industry depends on its dynamic capabilities. Despite the fact that the capability literature is informative about the impact of dynamic capabilities on company decisions and eventual company performance, it falls short in answering “how” these capabilities are developed. This paper aims at filling this gap by exploring how VC firms perceive a new domain as an opportunity, develop the willingness to enter the domain and reorganize their internal resources to implement the entry.