VC fundraising is on track to close the year with $57 billion—67% below the 2022 record—and 459 funds, the lowest fund count since 2013, according to the latest PitchBook-NVCA Venture Monitor.
During the later years of the boom cycle, VC became the best-performing alternative asset class. LPs clamored for the sector. But times have changed.
"[The] venture fundraising environment has been one of the worst in the first nine months of this year that we have seen in the past decade," said Brijesh Jeevarathnam, global head of fund investments at Adams Street Partners, an LP in many VC funds. "After [a] sluggish four, five months, things are picking up for the next six to 12 months."
But just because there's an increase in activity doesn't mean that total VC fundraising will be more robust in 2024.
Kirsten Morin, co-head of venture capital at HighVista Strategies, an asset manager and fund-of-funds, said that VC funds are unlikely to raise more capital next than they are raising this year.