11:09:00 PM PDT - Saturday, August 13th, 2022

6 first-time funds see an advantage in entering a downturn without a large portfolio  

By Editor - Thu Aug 04, 12:21 pm

Who will fare better in the current venture downturn? Will it be the legacy investors with years of experience amassed through multiple market cycles — but who also have a sizable portfolio to worry about — or the emerging managers who are looking at the market with fresh eyes and a clean slate? We’re about to find out. Last year saw a record 270 first-time funds close, according to PitchBook data , which means there are almost 300 emerging managers who raised their fund in a bull market and are now deploying it in very different market conditions. We polled six first-time funds to better understand how this group of investors is navigating the downturn. Several first-time fund managers, like Giuseppe Stuto, co-founder and managing partner of 186 Ventures, a Boston-based early-stage generalist fund, told TechCrunch that entering the downturn with a very small existing portfolio could serve as a big advantage. “We don’t carry any of the baggage that may come with having previous funds or having a lot of capital tied up in what seems to be highly overpriced vintages,” Stuto said

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6 first-time funds see an advantage in entering a downturn without a large portfolio

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