Thu, Mar 28, 2024
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Global venture capital fundraising down 8.6% YOY to $53.5bn in Q2 2022

Wednesday, July 27, 2022

Laxman Pai, Opalesque Asia:

Global venture capital (VC) raising by funds in Q2 fell just 9% compared to Q2 2021, to $53.5bn, but lower distributions and longer hold periods could hit in H2, said a study.

According to Q2 2022 Venture Capital Report by Preqin, the number of funds closed was down by 56.4% in Q2 2022 compared with the same period last year. Meanwhile, aggregate capital raised fell by just 9%, compared to Q2 2021.

This strength is unlikely to continue into the second half of the year. As hold periods extend and distributions slow, this solid performance in H1 is unlikely to be repeated in H2, the study pointed out.

"With global markets experiencing a huge amount of turmoil during 2022, venture capital could be the private capital asset class most exposed," Preqin said.

Concerns over start-ups' high cash burn rate and limited exit options caused by the global equity sell-off are extending funds' holding periods and slowing capital distributions. "This has created the knock-on effect of weakening fundraising, and Preqin analysts expect a more pronounced slowdown in H2 2022," said the report.

Global IPO exits are down 65% in Q2 2022 to 75, compared to 217 in the same period last year. A tough IPO exit environment is making it difficult for VC funds to provide liquidity for investors. As a result, holding periods have increased. This means funds are lasting longer and distributions are slowing.

According to Preqin, global venture capital deal numb......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. KKR raises $6.4bn for the largest pan-Asia infrastructure fund[more]

    Laxman Pai, Opalesque Asia: The New York-based global investment firm KKR has raised a record $6.4bn for its second Asia-focused infrastructure fund, underlining investors' continued appetite for private markets. According to a media release from the alternative assets manager, the figure top

  2. Bucking the trend, top hedge fund makes plans for a second SPAC[more]

    From Institutional Investor: SPACs aren't dead. At least not to the folks at Cormorant Asset Management. The life sciences firm, whose hedge fund topped its peers in 2023, is confident it will match the success of its first blank-check company. Last week, the life sciences and biopharma speciali

  3. Benefit Street Partners closes fifth fund on $4.7 billion[more]

    Bailey McCann, Opalesque New York: Benefit Street Partners has closed its fifth flagship direct lending vehicle, BSP Debt Fund V, with $4.7 billion of investable capital across the strategy. Benefit Street invests primarily in privately originated, floating rate, senior secured loans. The fun

  4. 4 hedge fund themes that are working in 2024[more]

    From The Street: A poor earnings report from Tesla (TSLA) has not hurt the indexes on Thursday. The decline in Tesla stock, which is losing its position in the Magnificent Seven pantheon, is more than offset by strong earnings from IBM (IBM) and ServiceNow (NOW) . In addition, the much higher-t

  5. Opalesque Exclusive: A global macro fund eyes opportunities in bonds[more]

    Bailey McCann, Opalesque New York for New Managers: Munich-based ThirdYear Capital rebounded in 2023, following a tough year for global macro. The firm's flagship ART Global Macro strategy finished the year up 1