Venture Investors Warn Faster Fund Cycles May Strain LPs

Beezer Clarkson, a managing director at LGT Capital Partners, said some venture funds are returning to raise after about a year, a faster pace that may strain limited partners if distributions lag. Clarkson described two to two and a half years as the earlier fundraising interval. Amit Bhatti, a partner at TrueBridge Capital Partners, said 24 to 36 months was the former norm and 12 to 18 months is plausible for funds deploying capital especially quickly. The estimates concern some funds, not an industrywide count. “It’s definitely a yellow light,” Bhatti said.

Source: TokenPost