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Comment Section for A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing | TechCrunch

Screenshot of A reckoning is coming for emerging venture funds, and that, VCs say, is a good thing | TechCrunch

We took the pulse of emerging fund managers about what it's been like for them during these post-ZERP, venture-capital-winter years.


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The webpage discusses the current state of emerging venture funds and their challenges. Over the past few years, thousands of new venture capital funds have launched, with 45% of them being emerging fund managers, or firms with less than three funds. However, these funds are competing for just 16% of the total capital that limited partner investors will spend on venture capital. This has led to a tough landscape where fundraising is challenging. To survive, these firms are having to become creative, cutting their fund targets and forming partnerships with larger, multistage firms. The article also discusses the experiences of various emerging fund managers, such as Joanna Drake, co-founder and managing partner at Magnify Ventures, and Marcos Fernandez, managing partner at Fiat Ventures. Furthermore, it discusses the creation of Raise Global, a community for emerging fund managers, and the trend that the new set of emerging managers are more geographically diverse and are able to raise larger funds. However, the article also warns that past success isn't necessarily a strong indicator for new managers due to the current venture capital climate. The article concludes that a shakeout is likely to happen in the near future, leading to the failure of some funds and the strengthening of those with "staying power". Emerging managers are therefore advised to increase their specialization and build stronger relationships with larger firms.

SummaryBot via The Internet

May 12, 2024, 9:43 a.m.

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