TLDR:
Key Points:
- Raising a sophomore fund is a tough journey for venture capital managers
- OpenLP predicts that a drop of 5-15% in success rates could lead to a significant number of first-time managers exiting the market
In the article “Crossing the chasm: The difficult journey from Fund I to II,” the challenges faced by venture capital managers in raising a second fund are explored. OpenLP boldly predicts that a decrease in success rates could result in up to 347 first-time managers exiting the market. The article highlights the complexities and uncertainties surrounding the fundraising process for sophomore funds, shedding light on the potential impact on the venture capital landscape. With insights from industry experts, the article offers valuable perspectives on the difficulties faced by managers looking to transition from their first fund to their second.
