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VC bigwigs breaking away to start anew struggle to raise funds

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VC bigwigs breaking away to start anew struggle to raise funds

Several venture capital partners who have left their firms to start their own have encountered difficulties in raising capital. Investors currently prefer the higher returns provided by the public markets, which makes it challenging for these new fund managers to convince limited partners to invest in private markets. However, some believe that a correction in the public markets is imminent, leading to potential opportunities for venture capital funds. The departure of partners to establish their own funds has occurred due to factors such as niche opportunities, internal conflicts, and corporate governance issues. The track record of a fund and its managers plays a significant role in attracting investors, but proving this track record can be challenging for newly established funds.

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