Many of the venture capital funds that splurged in 2021 are now struggling to gather returns, Inc. reports.
Less than 10% of funds that were raised in 2021 have paid their investors anything within three years, according to new research from Carta.
That’s low by any measure, even when compared to other, less stellar years: “25% of the 2017 vintage had distributed at least some capital at the same checkpoint,” the report says.
Since 2021, rising interest rates, geopolitical tension abroad, and a looming presidential election have caused a dramatic pullback among VCs. The $329 billion in VC investment in 2021 fell to $209 billion in 2022, and $149 billion in 2023.
