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Q2 2023
PitchBook Analyst Note: Challenges for Emerging Managers
June 23, 2023
Unraveling emerging managers' struggles and the future of smaller VC ecosystems
Emerging US VC managers have only secured $2.3 billion so far this year, putting them on track to close less than $20 billion in annual commitments for the first time since 2016.
Limited track records and returns have given LPs pause amid a volatile market, but will there be long-term implications for the venture market if these newer managers continue to be passed over?
Our latest analyst note breaks down emerging managers' historic performance, the factors making fundraising more difficult, and the larger ramifications for the venture market as younger managers struggle to secure investor dollars.
Table of contents
Emerging US VC managers have only secured $2.3 billion so far this year, putting them on track to close less than $20 billion in annual commitments for the first time since 2016.
Limited track records and returns have given LPs pause amid a volatile market, but will there be long-term implications for the venture market if these newer managers continue to be passed over?
Our latest analyst note breaks down emerging managers' historic performance, the factors making fundraising more difficult, and the larger ramifications for the venture market as younger managers struggle to secure investor dollars.
Table of contents
| Key takeaways | 1 |
| Introduction | 2 |
| The evolving fundraising landscape | 2 |
| What factors are making fundraising more difficult for emerging managers? | 5 |
| What are the implications for the US VC ecosystem if emerging managers struggle to fundraise? | 9 |