VC corporations are holding on to their checkbooks because the funding market slows to a crawl, however fund managers are benefiting from the lull to refill their coffers to the purpose of overflowing.
Within the first half of 2022, U.S. enterprise capital corporations raised a $121.5 billion, a shocking leap from the $74.1 billion raised in the identical interval final 12 months, in response to PitchBook. The 12 months’s first six months additionally noticed a document 30 funds elevate $1 billion or extra.
However the numbers don’t paint the total image.
“I doubt many funds are getting into the market proper now.” Kyle Stanford, analyst, PitchBook
For one, this success is just not shared equally. Whereas it by no means actually is — bigger, extra established corporations historically have the community and LP relationships that make it simpler to gather massive quantities of cash — the divide between the megafunds and the remainder of the market has widened by fairly a margin this 12 months.
Presently final 12 months, PitchBook reported that just about half of the LP cash raised by VCs was invested in funds bigger than one billion {dollars}. Within the first half of 2022, that portion elevated to 63.9%, which means almost two-thirds of enterprise capital was raised by simply 30 funds.
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