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The Ripple Effect: How the Lack of Liqudity and Exits Has Decimated PE and VC Fundraising

In the dynamic world of Private Equity and Venture Capital funds, the absence of successful exits, such as acquisitions and IPOs, as indicators of a fund’s profitability can cast a shadow on fundraising endeavors. For example, total global VC fundraising for the first 9 months of 2023 was $196.6 billion, a preciptous decline of 45% vs the $354.9 billion invested in the same period in 2022 and down an even greater 57% vs 2021.* Without tangible exit successes, potential investors face heightened uncertainty, impacting their willingness to commit capital and can cast a shadow on fundraising efforts. Liquid Capital’s “early and continuous” liquidity solution can help to totally reshape this narrative. Studies show that ready access to liquidity significantly improves a fund's attractiveness to investors. This solution would both mitigate concerns about exit strategies and also offer a safety net for investors, assuring them of the ability to realize returns promptly. In today's economic environment, where confidence is key, emphasizing a PE or venture fund's commitment to liquidity and outlining strategies for achieving it becomes paramount. A proactive approach not only addresses investor apprehensions but also positions the fund as forward-thinking and adaptable with a strong foundation for sustainable growth.

Liquid Capital is a game changing, AI-first solution that will provide early and continuous liquidity to PE funds and Venture funds as well as greater access to accredited investors. Learn more by joining our Beta at Liquid Capital Revolutionizing Liquidity for Private Capital Markets #liquiditymatters #privateequity #wealthmanagement #blockchain #venturecapital


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