It can be hard for emerging venture managers to get on institutional investors’ radars. Many LPs already have long-term relationships in the asset class, and these investors frequently have lean teams with a long list of investment criteria. But as venture fundraising continues to slow, now may be the perfect time for emerging managers to get their foot in the door.
Over the past few weeks, I’ve written about the state of venture fundraising in what’s shaping up to be a weird year. While institutional investors aren’t pulling back from venture, overall firm fundraising is slowing down. Because of this, LPs may not have as much cash on hand as before but they may have something more important — time.