Forbes November 26, 2024
The global fundraising market for venture capital (VC) funds is on track for its worst year since 2015. The shortage of IPOs since 2022 has meant that Limited Partners (LPs) – investors who commit capital to venture funds in exchange for a proportionate share of the profits – haven’t gotten liquidity. And given the lack of distributions, many are hesitant to commit more capital to the asset class.
It has caused not just a venture stalemate, but an extinction. VCs are on track to close 1,300 new funds globally this year, which is a large drop from the all-time high of 4,000 funds raised in 2021. And for emerging funds, the picture is particularly challenging. Pitchbook reports that 81% of...
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