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Laxman Pai, Opalesque Asia:

As of September 2022, venture capital managers have $530.8bn of dry powder to deploy into the market, said a study.

According to Preqin Global Report 2023: Venture Capital, there are currently 5,048 venture capital funds in the market globally that are targeting $400bn in the capital.

From a fundraising point of view, this is making the environment extremely challenging for some. This is especially seen across emerging managers, who are having a tougher time fundraising as asset owners look to re-up with existing relationships and hold off commitments to new managers.

"Despite our forecast that fundraising will only grow by 68.9% from 2021 to 2027, we expect dry powder to increase further to $659.1bn by the end of 2027. The fundamental drivers of investor interest in the venture capital space are still intact, but investors are only prepared to pay a more conservative price for exposure in this macroeconomic environment," Preqin said.

"The fundamental drivers of investor interest in the venture capital space are still intact, but investors are only prepared to pay a more conservative price for exposure in this macroeconomic environment," it added.

Venture capital has been the strongest driver of private capital performance returns over the past decade. The asset class has delivered a median net IRR of 22.7%, outperforming private equity (19.2%) at a slightly lower level of risk.

"Venture capital returns have been phenome......................

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