The primary half of 2022 broke fundraising information at VC corporations, however on the similar time, just about everybody we spoke to anticipated fundraising to gradual to a trickle by the top of the 12 months. And whereas it’s slowing down, fundraising can be getting actually bizarre.
By bizarre, I imply largely unpredictable. In line with 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 efficient signal — it’s slowed for a lot of.
“I’ve seen an extension within the time frame from launch to preliminary fund shut,” Harris mentioned. “It’s taking longer for funds to get raised.”
PitchBook knowledge backs up Harris’ assertion. Kyle Stanford, a senior analyst at PitchBook, advised me that fundraising knowledge by way of August signifies that fundraising in Q3 will probably be decrease than Q2, which marked a steep drop from Q1.