VC fundraising will get bizarre as autumn nears

The first half of 2022 broke fundraising information at VC corporations, however on the identical time, just about everybody we spoke to anticipated fundraising to sluggish to a trickle by the tip of the 12 months. And whereas it’s slowing down, fundraising can be getting actually bizarre.

By bizarre, I imply largely unpredictable. According to Kari Harris, an lawyer targeted on agency fundraising at Mintz, whereas fundraising stays comparatively wholesome total — GPs nonetheless have the higher hand in negotiations with LPs, which, to her, is an effective signal — it’s slowed for a lot of.

“I have seen an extension in the period of time from launch to initial fund close,” Harris stated. “It’s taking longer for funds to get raised.”

PitchBook information backs up Harris’ assertion. Kyle Stanford, a senior analyst at PitchBook, instructed me that fundraising information by means of August signifies that fundraising in Q3 will almost definitely be decrease than Q2, which marked a steep drop from Q1.