PitchBook Analyst Note: US VC Fundraising From an LP Perspective

What LPs look for in a VC fund

VC fundraising has become a brutal slog. Indeed, LPs’ bar for backing a venture vehicle has risen significantly. Allocators are prioritizing funds whose predecessors converted returns into cash, remained disciplined during the 2021 market frenzy, and had a thoughtful strategy around fund size increases.

Emerging managers with unique networks and relevant industry experience can stand out from the pack. Our latest analyst note outlines expectations for smaller fund sizes, fewer new products, and a shakeout of mediocre managers who struggle to adapt.