OVP Venture Partners, the Kirkland VC firm that just closed its seventh fund at $250 million, sent out a electronic newsletter today discussing how the industry is headed for a restructuring -- for the better or worse.

The newsletter put the situation into three buckets: complacency, adjacency and free agency.

On complacency:

"No one wants to be accused of complacency. That has a pejorative connotation right from the start. But while inertia can be a powerful force, it is not always a bad force. Sometimes, inertia can keep you in place long enough to decide whether you really do want to leap across that open crevasse.

On adjacency:

Most observers of successful businesses will tell you that you should stick to your knitting. And failing that, only take up needlepoint, not arc welding.

In doing so, OVP saw the biotech trend evolving and decided to converge that with its expertise in IT to create Digital Biology.

But what the firm really spoke out on was the notion of "free agency."

What is troubling about many of the conversations we hear today is the amount of free agency that is being advocated. We see firms heading to green tech, clean tech, later stage, roll up, India, China, you name it. Now, to be fair, this may be a legitimate case of adjacency for some firms, if they have been at the edge.... But for many others, we see this as a bridge too far.