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PitchBook Analyst Note: US VC Fundraising From an LP Perspective

Q1 2024

PitchBook Analyst Note: US VC Fundraising From an LP Perspective

February 5, 2024

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.


Table of contents
Key takeaways 1
The VC fundraising landscape has evolved 2
What is on LPs’ minds? 6
How are LPs evaluating new GPs in this environment? 7
What has changed or is set to change soon? 9
Outlook 11