Updated: Aug 10
Which funds are most likely to to be deploying capital currently?
Quickest answer: those who have made recent investments, and those who have announced a new fund in the last 18 months.
Despite COVID, the majority of venture capital funds continue to remain 'open for business', but does this mean they are all continuing to deploy capital into new opportunities? In this article, we look at which funds have raised fresh capital recently.
This quarter, deal volume has risen back to mid 2019 levels, valuations have remained fairly level, but investments into new companies have fallen sharply. Much of the rise in deal volume can be accounted for mega-rounds and companies who had already secured prior institutional funding.
Here are some factors to consider in assessing whether an investor is still looking for new opportunities, rather than extending runway for its existing portfolio companies:
Has the investor recently raised its own fund? (See below!)
Has the fund recently announced an investment (in the last 2 months)?
How impacted do its portfolio companies continue to be by the pandemic?
Is the fund sector agnostic, or does it have a particular focus?
How far through is the fund in its deployment cycle? (Most VC funds deploy within three years of raising their fund)
How impacted are its Limited Partners, its own investors, in the current climate and therefore how likely are they to support follow-ons, new funds and commitments?
Some of the answers to these questions are difficult to answer without asking the fund directly. For example, it's unlikely that you will be engaging with the funds' investors and researching a fund's portfolio takes time. Get in touch if you'd like some market knowledge on this!
To help you get started, we've compiled a list of European VC funds that have recently raised their own funds here.
If you would like to be sent an editable excel version, please email firstname.lastname@example.org
For further information on funds who have made recent investments, there are a number of databases you can use (e.g. Beauhurst in the UK).
If you're looking to raise your next round of funding, don't hesitate to get in touch with one of the team at Mountside Ventures.
Looking for more intel? Get in touch with one of the team and sign up here to stay connected.
We have a number of other resources on our site. For example, how to pitch to investors remotely, as well as what to consider when engaging investors for your institutional round.