Institutions & Venture Fund-Raising

There is a money quote in a story on The Deal today that adds color to something a large LP guy said to me recently about institutions and their appetite for the venture capital asset class. The piece is about a Texas fund having trouble raising its third fund, which would be its first from institutions:

“Most institutional LPs are re-upping only and primarily with GPs where they have had a 15- to 25-year record,” [the partner] said. “We weren’t a match for what the market is buying at this time.”

That is remarkable stuff. If you winnow down the list of extant GPs to only those with, say, 20-year records, how many are left? A vanishingly small number.

Related posts:

  1. Raising a Venture Fund
  2. A New Venture Fund Bubble?
  3. Hedge Fund Success Dooming Industry to Lower Returns?
  4. Physicians are Evil Venture-Fund-Loving Money-Grubbers
  5. The Hedge Fund Bubble