VC companies are: they hold on to their checkbooks as the investment market slows, but fund managers take advantage of the lull to fill their coffers to the point of overflowing.
In the first half of 2022, U.S. venture capital firms raised $121.5 billion, a staggering increase from $74.1 billion raised in the same period last year. according to PitchBook. The first six months of the year also saw a record 30 funds raising $1 billion or more.
But the numbers don’t give the full picture.
“I doubt there are many funds coming onto the market at the moment.” Kyle Stanford, Analyst, PitchBook
First, this success is not evenly distributed. While it’s never really true – larger, more established companies have traditionally had the network and LP relationships that make it easier to raise large amounts of money – the gap between the mega funds and the rest of the market has closed by quite a bit this year. margin increased.
About this time last year, PitchBook reported that nearly half of the LP money raised by VCs had been invested in funds worth more than a billion dollars. In the first half of 2022, that share rose to 63.9%, meaning nearly two-thirds of the venture capital was raised with just 30 funds.