{"id":61786,"date":"2023-12-14T23:46:11","date_gmt":"2023-12-14T23:46:11","guid":{"rendered":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/12\/14\/what-is-happening-with-all-these-new-venture-funds-techcrunch\/"},"modified":"2023-12-14T23:46:11","modified_gmt":"2023-12-14T23:46:11","slug":"what-is-happening-with-all-these-new-venture-funds-techcrunch","status":"publish","type":"post","link":"https:\/\/entertainment.runfyers.com\/index.php\/2023\/12\/14\/what-is-happening-with-all-these-new-venture-funds-techcrunch\/","title":{"rendered":"What is happening with all these new venture funds? | TechCrunch"},"content":{"rendered":"


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A growing number of venture firms may be uncorking champagne ahead of the New Year. Today, a handful of investment firms announced new funds: Artis Ventures<\/a>, BoxGroup<\/a>, Playground Global<\/a> and Singular<\/a> all closed on funds, while Partech<\/a> said it was launching a \u20ac360 million venture fund.<\/p>\n

Against a backdrop of layoffs and continuing economic uncertainty, the announcements \u2014 particularly in such quick succession \u2014 are something of a shock. But they point to a few underlying truths about the market right now.<\/p>\n

Institutional investors are still interested in venture capital as an asset class; with more rational valuations, they see 2024 as a good time to deploy money into startups; they\u2019re also eager to maintain their relationships with venture firms that have delivered on some of their promises in recent years, especially after getting a bit of a breather in 2023.<\/p>\n

As Lerer Hippeau managing partner Eric Hippeau told TechCrunch last year, when the firm raised a $230 million in 2022<\/a>: In 2021, \u201c[A]ll of the limited partners were completely overwhelmed by people raising two funds in one year or way more than they usually do.\u201d<\/p>\n

The question is to what degree LPs are beginning to relax their purse strings, and despite today\u2019s spate of funding news, the answer is far from clear.<\/p>\n

Steph Choo, a partner at the venture firm Portage, maintains that it\u2019s still a \u201ctough fundraising environment.\u201d She thinks what we\u2019re seeing is the result of continued interest in funds with strong track records and distributions to paid-in capital.<\/p>\n

Karim Gallani, general partner at Luge Capital, agrees with the sentiment. Limited partners \u201cwill continue to back the fund managers they believe can not only select those companies consistently, but can get into those deals when they\u2019re competitive,\u201d Gallani said via email.<\/p>\n

Falling valuations may also catch the attention of institutional backers, whose portfolio managers may have overpaid for deals in recent years owing to a frothy market \u2014 and who can, for the time being at least, get much better deals on talented teams.<\/p>\n

\u201cAs a fund, if you have dry powder, now is the time to deploy because the best historical vintages in venture have come from periods after a valuation reset,\u201d Choo said via email. \u201cSome forward-thinking LP\u2019s are also looking at these same historical trends, in conjunction with the wider macro (strong public market performance, calls for a soft-landing, etc.), which may drive renewed interest next year.\u201d<\/p>\n

In the meantime, LPs may not be responding so much to what\u2019s around the corner in 2024 but looking across the longer horizon, particularly given that venture funds typically invest across a 10-year period.<\/p>\n

As Gallani notes, so many new fund announcements doesn\u2019t necessarily indicate that 2024 is going to be \u201ca prosperous year.\u201d The bet is more likely that the venture industry \u2014 always a cyclical business \u2014 will invariably bounce back, and that this rebound will happen sooner than later.<\/p>\n

Connie Loizos also contributed to this article.<\/em><\/p>\n<\/p><\/div>\n


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A growing number of venture firms may be uncorking champagne ahead of the New Year. Today, a handful of investment firms announced new funds: Artis Ventures, BoxGroup, Playground Global and Singular all closed on funds, while Partech said it was launching a \u20ac360 million venture fund. Against a backdrop of layoffs and continuing economic uncertainty, […]<\/p>\n","protected":false},"author":1,"featured_media":61787,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":{"0":"post-61786","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-tech"},"_links":{"self":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/61786","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/comments?post=61786"}],"version-history":[{"count":0,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/posts\/61786\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media\/61787"}],"wp:attachment":[{"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/media?parent=61786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/categories?post=61786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entertainment.runfyers.com\/index.php\/wp-json\/wp\/v2\/tags?post=61786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}