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May 01, 2024 | Tom Ballard

Average fund size continues to decline

Venture Capital Journal reports that Q1 of 2024 was the lowest in five years.

Venture Capital Journal reports that the size of funds is continuing to decline.

According to this article, the average fund size raised in Q1 of 2024 was $115 million. “That is a dramatic drop from about $158 million for all of 2023 and $167 million for all of 2022,” the article noted, adding, “It is the smallest figure since 2019, when the average fund came in at about $112 million.”

It is a difficult time for fundraising as Limited Partners are more tight-fisted than in the past since they are not seeing the distributions they once did.

The article cites the experience of SOSV has announced the close of SOSV V fund at $306 million recently (see post from last week here). While it was the firm’s largest fund to date, SOSV expected to close at more than $400 million before the collapse of Silicon Valley Bank and the fallout from that event.

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