European VC investors are warning of tougher conditions for emerging managers for the rest of the year as fundraising continues to be difficult.
At this year’s SuperVenture conference in Berlin, Mark Schmitz, managing partner of fund-of-funds Equation, said that first-time or second-time funds in Europe usually are too small to get the attention of institutional investors, so LPs tend to be family offices or company founders. The market downturn has made fundraising from those sources more difficult.
“Europe has an incredibly heterogeneous fundraising landscape, and family offices are relatively hard to spot for newcomers to the market,” Schmitz said. “It means that entrepreneur commitments are fundamental, but with the lack of liquidity in the market, they cannot commit to the funds as much anymore.”
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