Venture capital funds in the United States raised more dry powder in the first three quarters of this year than in all of 2021, but it’s not evenly distributed: Big funds keep getting bigger while fundraising gets harder for with most other players. And third-quarter data shows that where a company’s headquarters is located seems to play an increasing role.
As of Q3 2022, U.S. venture firms have raised $150.9 billion across 593 funds, according to data compiled by PitchBook. While this represents an increase from the $147.2 billion raised in 2021, it marks a staggering decline from the 1,139 funds that closed last year.
A lot of these dollars have gone into established or established companies that have great fundraising potential, although some have obtained dollars by garnering hype. As a result, LPs are not interested in supporting companies outside of established venture hubs this year, marking an unfortunate reversal to the COVID-induced trend of being a lot of risk money. are finding their way into emerging ecosystems.
