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.