Choosing the optimal size for your venture capital fund is one of the most critical decisions you will make as a fund manager. Beyond reflecting your investment thesis, fund size determines how you operate, the types of investments you pursue, and your team’s ability to sustain the fund over its lifespan. In today's resource-intensive, competitive fundraising environment, these considerations are more important than ever.

The most recent Global Fundraising Report by Venture Capital Journal shows that capital raised in Q3 2024 surpassed previous quarters, but optimism remains limited due to increased market consolidation. While the average fund size has hit an all-time high, many fund managers are grappling with challenges in the market and are turning to placement agents (PAs) for the first time to secure commitments.

GPs are experiencing more than ever, a new wave of sensitive, and at times, intrusive requests from LPs during due diligence. While it’s standard to provide background information, track records, and compliance documents during the due diligence process, some recent asks are raising eyebrows and making GPs uncomfortable. These requests are not just intrusive—they could be a sign of deeper, strategic motives that GPs need to be aware of.

Fundraising optimism is growing as we enter the second half of 2024. The environment continues to be competitive across the board, especially for emerging managers. According to Pitchbook, established funds have secured 77% of fund value YTD. Though conditions are still tougher than in previous years, LPs are slowly starting to deploy again. With this shift, postponed raises will likely begin to launch this fall.

Are you looking to deepen your connections with founders and LPs? If so, our session on Engaging with Founders and LPs: The Power of Events & Webinars is a wonderful resource! Special guests Rachel Mackey, Founder of Rachel Does Content, and Lauren Young, Head of Network Operations at Union Square Ventures, explore the tips, tricks, and best practices for creating memorable experiences both virtually and IRL that will deepen your relationships with LPs, founders, co-investors, and beyond.