The Ledger, every show

“And I've heard LPs that used to say, hold on to all your winners all the time are now saying, well, I meant that. But in context, there are times when it could be useful.”

“The only other time that would be equivalent would be about 99 and 2000, and I don't know if there is the volume of funds in the market then, so, and absolute numbers, he's probably right.”

“Well, I know a lot of LPs that will ask their managers, and then go back home and take another 20 to 25% off the top, because there's things that nobody knows.”

“Well, and then I heard stories, and this is a story, so put it under the rumor and hearsay bucket, but that last year, the end of twenty-twenty-two, when the auditors were getting involved, they were telling GPs to talk to each other to try to figure out how t…”

“We've yet to see a fund that's returned three or more X that does not have a company that's returned at least one time the fund.”

“That's not true. I think LPs are being more selective and making new investments. I know we are, I know others that are, They're absolutely making new investments.”

“A lot of LPs also pre-spent future budgets, if that makes any sense. If you were raising a fund every 18 months, and I thought you were raising every three years, I had two choices. Either I pull from future year budgets, or I reduce my check so that I stay co…”

“I think we're seeing some, the tip of the iceberg. And if the market doesn't come back, there could be a lot more. And that is when, to your point about When endowments and foundations and other LPs have to make some really hard choices about what they keep in…”

“We already are.”

“We've been looking at data going back to 1995. I was shocked at the breakage. The breakage between Fund One and Fund Two is not every year, but averages out to be about 50%.”

“What was also sort of heartbreaking was the fund one to fund four on average, again, these are averages, some years are better, some years are worse, is 17%.”

“The other thing we're seeing in this market is people are unstapling their funds because a number of LPs felt dragged into it”

“We're hearing from our fellow LPs that they are stuck on and committing this year, potentially next year, because of exactly this. They did so much because they felt they had to preserve relationships, and they were looking to make money for whatever instituti…”

“At the end of Q-three, we pulled some numbers, thanks to our friends at PitchBook, and there's been thirty-three billion raised by 157 funds. This is just in the U.S., And what's really interesting about this is we haven't seen this much money raised in one ye…”

“What I can say is, is through Q three, You know, we go through and we curate the data, we pull it from a number of sources, and then we curate it, because sometimes funds close one year and then do a final close a second year, so the numbers are a bit squishy,…”

“I think we've yet to run the math and see a fund that's gone over fifty million that doesn't have to start having some trade-off between ownership and AUM.”

“One of the weird things about the market from the last, sorry, twenty-twenty to twenty-twenty-two, we did not, as an industry, have the loss ratios, even probably back earlier, that one would expect in venture.”

“If you're an LP that has a, as a sort of existing book of venture business, and you've got it over different times, you will a hundred percent see that people will value their companies differently.”

“I think there's been many conversations with LPs suggesting GPs slow their roll.”

“Do you know the average CIO is like a Five year tenure. I did, I actually thought there were like, 15 years. But no, a friend of mine was like, oh no, it's three to five years.”

“There's so many fewer of those than people thought.”

“I think we're bumping along the bottom. I think it should start coming up at some point. You know, I don't know if Jason's right, it's back half of 24, you're right, and it's 20, 25. At some point, it will come back up.”

“We're seeing a retrenchment in almost every single level, back to 19 or 20 pricing, which doesn't mean to say it's falling off a cliff.”

“We look through, we do not have the loss rates at seed that should fit that level. Over time, it should work out because life is long, but you're seeing so many companies, and you can raise multiple follow-ons on seeds. You're just not seeing those loss rates.”

“Painful secret if people don't know this, so LPs don't see the management company docs. The document that gets shared between the LPs and the GPs is the LPA. So if you ask to see the management company documents, I would be surprised on the GP that will share …”

“Listening to the number of managers, like GPs now talk about revenue, and that happening, and the folks at Series A looking to see more revenue metrics, it actually feels, I know it's a bit of a, like, return to an old new thing, but it's a bit of a new new th…”

“While we predict there will definitely be more coming this year, we don't think there'll be the same numbers last year by any stretch.”

“I have a hard time believing that we're going to raise as much money this year as we did last year, and that's a gimme, right?”

“Well, certainly the multiples paid in the private markets at one point in time were exceeded that in the public markets, and that was cause for a lot of concern in the late 15 into 16, and you saw the crossover investors pulling back because of that, and you a…”

“Statistically, a much bigger year of more five hundred million dollar funds being raised in a decline of these sub one hundred million dollar funds. But this is coming on the back of a number of years of 30 billionish raises where you had a lot of micro funds …”

“We think that there could be more of a move away from the private IPO into companies going public and moving down that path and sort of a reversion to what it used to look like before.”

“Given the challenges in the public market, they pulled back pretty heavily end of 2015 into 2016. So some of that capital that was available to private companies is no longer available”

“On average, we've been seeing about five or so of these opportunity funds raised per year since 2011, and this year there were 14 closed, as we thought, which spiked the numbers to over two billion in opportunity funds”

“SASTR to me is a great example of that because the community he built, that's just really hard to replicate, and it will deliver a significant amount of deal flow to him”

“There are probably even fewer funds than there are firms, than there are startups, so that database doesn't, it's hundreds, but it's not thousands.”

“You will see that what is considered emerging managers, and these are venture funds that are on their first through fourth fund cycles. Are always represented in the best and the worst performing managers, and then the established funds, the ones who are vinta…”

“2016 is a really interesting year. It's been something we've called the year of the haves and the have-nots, and it's still far from played out, but you've seen just an incredible amount of money being raised very quickly in the first quarter And when you dive…”

“We saw numbers about, like, 12 to 18 months, which is historically atypical, right? Usually it's three years. So if now they're lengthening back out to three years, yes, there's fewer funds being raised.”

“By our count, there's been almost seven billion dollars raised, and these are all U.S. Numbers, by 51 funds, and about 50 and a half billion raised by venture-backed companies.”

“Q one of this year only saw one mega fund raise. So props to Mithril two, which raised an eight hundred and fifty million dollar fund, but they're the only one.”

“So, there are more first-time funds this year than last year by more than double. So, last year, there were six during QI of 2016, and this year so far, there's been 17.”

“You know this, the fund sizes are healthy too, so averages are a bit deceiving, but you know, for what it's worth, the average for these 17 funds was a hundred million, and that wasn't just because there was like one ginormous one and the rest were dinky. Ther…”

“So this year we've had 15 of that sort of bucket size of funds raised versus eight of last year.”

“Forty billion was raised last year, which is just an incredibly large number, and that was on the back of two other years where average of thirty billion was raised per year, so that's just a lot of money.”

“We had 14 total during the year, 9.6 billion raised this in Q one, right? Cause Q two isn't done yet. Q one, we had three IPOs, but it shows you what an IPO can do because of the size of some of the IPOs you had almost twenty eight billion raised.”

“I mean, the largest fund that was raised this year was Eight Partners, which is Joe Lonsdale's new fund, and obviously he's an experienced investor. They raised for over four hundred million.”

“There's already been some forty billion that has gone into U.S. Venture-backed companies this year through Q three”

“Come 2001, The world went belly up in tech, and to their credit, back then, GPs gave the money back to LPs. I know, shocking, right? Can you believe it? And so they did well by their LPs, and they gave the money back that wasn't invested, and they basically sh…”