According to the fifth annual LP Perspectives survey conducted by Venture Capital Journal, institutional investors worldwide feel more negative about venture capital (VC) than during the COVID-19 pandemic. The elaborate survey consulted 117 global institutional investors with over 50 questions. Eight of these queries pertained specifically to the venture asset class and covered aspects such as investment plans in VC managers in the next 12 months, change in VC allocations, and whether the funds are meeting performance benchmarks.
- Institutional investors worldwide are feeling more negative about venture capital than during the COVID-19 pandemic, reveals Venture Capital Journal’s fifth annual LP survey.
- The extensive survey involved 117 global institutional investors and covered aspects such as their venture capital investment plans in the next 12 months, change in VC allocations, and fund performance.
The survey, part of the LP Perspectives 2024 Study by PEI Group, aimed to present a granular view of the market, both current and future. It sought to gather insights about investors’ asset allocation tendencies, willingness to invest, and performance predictions. The survey asked questions that accommodated cross-regional comparisons across different asset classes. The methodology involved reviewing the question set annually to reflect evolving market trends and changes in sentiment. Fieldwork for the 2024 study was carried out in September and October 2023, with participant anonymity maintained throughout the process.
However, as per the details available, the survey does not provide specific reasons for the apparent dissatisfaction among institutional investors towards the venture capital asset class. It remains to be seen if future studies or related surveys will shed more light on the concerns and challenges facing these institutional investors, which could help VC fund managers align better with their expectations.
