This Week in Startups

Venture Fund Size Growth, the Rise of Unicorns, and more with Elizabeth Yin and Zach Coelius | E1886

Jan 26, 2024
Elizabeth Yin, Co-founder of Hustle Fund, and Zach Coelius, Managing Partner of Coelius Capital, delve into the vibrant world of venture capital. They discuss the surprising growth of fund sizes even amid a sluggish market and highlight the 'flight to quality' trend among limited partners. The conversation reveals the challenges of larger funds in securing high-quality deals, the rising unicorn phenomenon, and the critical importance of a strong team in startup success. Fresh insights into current investment strategies provide a captivating overview for aspiring entrepreneurs.
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INSIGHT

Venture Fund Trends

  • Venture fund sizes are growing, but total capital raised is down significantly, creating a challenging fundraising environment.
  • Limited partners are prioritizing established, brand-name funds due to concerns about performance.
ADVICE

Fundraising in a Difficult Market

  • If fundraising, be prepared for LP hesitancy due to denominator problems and the need for exits.
  • Consider a 506C public raise to reach a wider pool of potential investors, including retail.
INSIGHT

Emerging Fund Managers

  • Emerging fund managers struggle to secure institutional funding due to limited track records.
  • They often rely on family offices and high-net-worth individuals who align with their investment thesis.
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