First half 2022 broke fundraising records at VC firms, but at the same time, pretty much everyone we talked to expected capital mobilization will decrease to a trickle at the end of the year. And while it’s slowing down, fundraising is getting really weird, too.
Weird, I mean largely unpredictable. According to Kari Harris, an attorney focused on corporate fundraising at Mintz, while fundraising has generally remained relatively healthy — GPs still dominate negotiations with LPs, this is a good sign – it has been slow for many people.
“I’ve seen an extension in the time between launch and initial fund closing,” Harris said. “It will take longer to raise funds.”
PitchBook data backs up Harris’s statement. Kyle Stanford, a senior analyst at PitchBook, told me that fundraising data through August shows that Q3 fundraising will most likely be lower than Q2, marking a sharp decline compared to Q3. The 1st quarter.
