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Venture Capitalist fundraising stays tepid in 2024 at $2.8 billion
- In 2024, venture capitalist fundraising remained subdued at $2.8 billion.
- Between 38–49 new venture capital funds were typically closed annually from 2015, with commitments ranging from $2.4-$4.5 billion.
- 2022 stood out due to a post-COVID startup funding surge where 93 new VC funds raised $11.2 billion, resulting in surplus capital due to a funding winter.
- Global uncertainty during election periods affected fundraising environments in 2024, with a large portion of capital being held back, especially in India.
- IvyCap Ventures closed its third fund at Rs 2,100 crore ($251 million) in 2024, marking a cautious fundraising year for most LPs.
- With increased political certainty in 2025, VC fundraising is expected to improve, particularly in sectors like defence-tech, deep tech, and artificial intelligence.
- Over 25 startups are expected to list on bourses in 2025, leading to significant exits for VCs through public market share sales.
- In 2024, VCs earned a record $4.06 billion from public market exits, reflecting a positive trend driven by a bullish IPO market.
- LPs typically seek a minimum return of 25% from PE/VC investments due to their high-risk nature and long holding period.
- Expectations vary based on sectors, with certain areas like deeptech and semiconductors requiring higher than 25% IRR for startups.
- Overall, LPs focus on the investment cycle rather than just valuations, emphasizing negotiation skills for optimal entry valuations.
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