TLDR:
- Prominent names in the VC and PE ecosystem are breaking away to start their own funds, facing challenges in raising capital.
- LPs are currently favoring the public markets for higher returns, making it difficult for first-time fund managers to secure funding.
Several partners like Sameer Brij Verma, Rahul Chaudhary, Piyush Gupta, and Vaibhav Agrawal have left established firms to start their own venture capital funds. LPs are content with returns in the public markets, leading to slower allocations in private markets. Fund managers are struggling to convince investors due to the preference for experienced managers and larger allocations to fewer managers. Challenges also arise from internal conflicts, corporate governance issues, and the need to prove track records. Despite niche opportunities emerging from a growing startup ecosystem, many fund managers face obstacles in fundraising and navigating the competitive landscape.
