VC Funds Struggling

Many emerging managers and first time VCs that raised in past 5 years are struggling to raise new funds

The effect will become evident sooner rather than later. Fundraising will be much harder

Anyone seeing this yet?

9 points | by kayovin1 13 hours ago

5 comments

  • deanmoriarty 2 hours ago
    I personally think it’s better to struggle early on than to give away money like candies to founders with dubious businesses who will then trick gullible employees into thinking that these companies’ massive valuations mean anything. I kid you not one founder told me once my equity was safer in the company than liquidated and put in the SP500, when I inquired about tender opportunities.

    I have vested equity (that I painfully exercised) in a “2020-era unicorn” that has been a complete zombie ever since. I wish they’d just go out of business for me to at least declare a capital loss on my taxes.

    I just have myself to blame clearly, so just stating an opinion.

    • toomuchtodo 1 hour ago
      You want to sell that equity to create a loss? If it’s worth zero, I’m happy to go through the exercise if it’s marketable. This offer is only good if it’s actually worthless and I’m not stiffing you on the value.
  • toomuchtodo 12 hours ago
    9 VC firms collected half of all money raised by US funds in 2024 - https://pitchbook.com/news/articles/us-vc-fundraising-concen... - December 11th, 2024

    3 years ago, VCs in Bay Area tech were thriving. Now, they're 'bleeding cash.' - https://news.ycombinator.com/item?id=42194832 - November 2024

  • f30e3dfed1c9 6 hours ago
    Good. The entire self-described "tech" industry has become a stinking cesspool. Less of it would be an improvement.
  • colesantiago 10 hours ago
    oh no. the poor VCs.
  • bigyabai 13 hours ago
    This is a good thing, too many software products enshittify themselves because they're reliant on handouts from their investors.