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Being a new GP in Venture Capital is tougher than ever in 2025. What role can Family Offices play?
When S/MFOs consider allocations to VC, it is easy to underestimate how much has changed and how hard the path truly is for GPs raising VC funds in 2025. While headlines mostly focus on startups raising rounds, every $ begins with a fund that had to clear ever-rising hurdles.
Despite abundant global capital, fewer funds are being closed, the average time to a meaningful first close of a fund now exceeds 17 months, and USD are increasingly concentrated among established managers. The leap from Fund I to Fund II, or especially Fund III, is not linear and it is an uphill battle of drop-off fundraises.
A few reasons:
LPs overwhelmingly favor managers with tangible, realized returns, first-time teams must bridge a formidable credibility gap.
Securing a serious anchor is often the difference between momentum and never-end network exhaustion, meaning that without it, fundraising stalls. S/MFOs should recognize the catalytic impact of being (or co-investing alongside a reputable) anchor.
Tighter liquidity, slower exits, and declining IPO activity mean longer fundraising calendars and far less cash returned to LPs. This concentrates risk and capital in brand-name GPs, leaving new entrants with fewer opportunities and less flexibility.
With most new/emerging funds run by lean teams (often just 1 to 3 GPs), supporting portfolio companies, fundraising, and operations simultaneously is a constant balancing act.
37% of first-time VCs won’t make it past their Fund II, and in 2025, a handful of large VC firms collected over 50% of all VC capital while most first-time managers struggled to gain traction. S/MFOs should be aware that for every new/emerging GP who seeks support, dozens more face insurmountable fundraising and operational barriers, making selection and ongoing partnership crucial.
Backing GPs is not just about writing a check. S/MFOs can make the greatest impact by acting as anchor or strategic LPs in new/emerging managers, while encouraging differentiation in a capital-concentrated world. S/MFOs who understand and support this journey will help build the next generation of VC leaders.
Being a new GP in Venture Capital is tougher than ever in 2025. Family Offices have an active role to play. 0 reply
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