Venture capital funds in the United States raised more dry powder in the first three quarters of this year than they did in all of 2021, but it’s not equally distributed: The big funds keep getting bigger while fundraising has gotten harder for the majority of other players. The Q3 data also shows that the location of a firm appears to play an increasing role.
According to data from PitchBook, the U.S. venture funds raised $150.9 million across 593 funds in the third quarter of 2022. This is a significant increase over the $147.2 billion raised last year, but it’s still a shocking drop from the 1,139 funds.
Many of these dollars went to legacy or well-established companies, which have the ability to raise mega-funds. However, some firms did not draw in money by generating hype. This means that LPs are less interested in backing venture firms outside of established hubs. This is a disappointing reversal from the COVID-induced trend where more venture money is moving to emerging ecosystems.

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