TLDR:
• Venture capital industry facing the end of the ‘megafund’ era.
• Investors seeking smaller, more focused funds for better returns.
Venture capital investors are reassessing their strategies as they reckon with the end of the ‘megafund’ era. Traditionally, large funds with billions of dollars under management have been sought after, but now, investors are shifting towards smaller, more focused funds that aim to deliver better returns. This trend is influenced by the challenges faced by megafunds, such as difficulty in deploying capital effectively and achieving attractive returns. The shift towards smaller funds is expected to bring more discipline and focus to the industry, leading to better performance and improved investor satisfaction.
