The fundraising downturn presents a rare opportunity for well-positioned LPs to take advantage of the pullback by many of their peers.
For the most part, domestic LPs are not keen to commit to homegrown funds, says Thomas Birch, a managing director at CDPQ.
Inside: Canada’s quest to recharge its growth trajectory; One man’s journey from prison to VC; The challenge of raising a sophomore fund; Indonesian private equity; Plus much more…
Canada drew 2,200 tech workers from outside the country in the first nine months of 2023, compared with 1,500 it lost to Europe.
After a couple of years of slower growth, Canada’s venture system is re-energized and poised to resume its expansion.
The capital needed to grow category-leading companies up north is beyond the capacity of LPs in Canada, which could make fundraising by VC managers more difficult.
Venture funds managed to raise just $15bn worldwide in Q1, a 53% decrease from about $32bn in the same quarter a year earlier.
The average fund size dropped to $115m in Q1 2024, its lowest point in about five years, according to new research from Venture Capital Journal.
Just how tough is it to raise a sophomore fund? OpenLP boldly predicts 'we could see up to 347 first-time managers exit the market' if success rates drop 5-15% from historical averages.
In just 12 months, Venture Capital Journal's list of climate-focused funds has grown to 44 funds that have raised a combined $9.5bn.