Short excerpt from a YouTube talk by Jason M. Lemkin arguing that despite stories of LPs cutting back and short-term fundraising challenges, capital will flow back into venture capital—he cites 2021 (and some of 2022) as strong years for LPs and advises not to draw long-term negative conclusions from short-term trends.
2021 and (for some LPs) 2022.
On 20 VC. There's so many stories of how hard it is to raise a fund and how LPs are cutting back. It doesn't last. It doesn't last. It can't last. Right. You're either in this asset class or you're not. So I know it may seem contrarian, but I don't think so. I think is, you know, 2021 was a great year for LPs, right? 2022 for some LPs actually was still great because of the time lag. Right. You could actually have a great year as an LP in 2022 if you're finally getting your post lockup distributions. A lot of folks had a good 2022. Some had a terrible but it bled in. But when times are good, money will re flood into this. So I think we just have to be careful about drawing short term conclusions. When I actually see so many things getting slightly better, like slightly better, it's really hard to see that curve, that logarithmic or parabolic distribution. But we want to count them out. But I think we should count them in.
