Women-led VC firms are on track to raise just two-thirds of the totals they raised in 2023 and 2022 as the broader venture industry struggles with a fundraising downturn.
An LP at this week's Women in Private Markets Summit North America says GPs need to understand the importance of managing reserves, especially in light of how dilutive new rounds of financing can be for companies that haven't yet broken out.
The fundraising downturn presents a rare opportunity for well-positioned LPs to take advantage of the pullback by many of their peers.
For the most part, domestic LPs are not keen to commit to homegrown funds, says Thomas Birch, a managing director at CDPQ.
Inside: Canada’s quest to recharge its growth trajectory; One man’s journey from prison to VC; The challenge of raising a sophomore fund; Indonesian private equity; Plus much more…
Canada drew 2,200 tech workers from outside the country in the first nine months of 2023, compared with 1,500 it lost to Europe.
After a couple of years of slower growth, Canada’s venture system is re-energized and poised to resume its expansion.
The capital needed to grow category-leading companies up north is beyond the capacity of LPs in Canada, which could make fundraising by VC managers more difficult.
Venture funds managed to raise just $15bn worldwide in Q1, a 53% decrease from about $32bn in the same quarter a year earlier.
The average fund size dropped to $115m in Q1 2024, its lowest point in about five years, according to new research from Venture Capital Journal.