February 2024 

The latest perspectives from OpenLP, a resource for the venture community to hear from a diverse group of LP and GP voices.

LP & GP Voices

6 Questions You Should Ask LPs Before They Write a Check with Katie Riester

By David Weisburd

Katie Riester, Managing Director at Felicis, sits down with David Weisburd on the 10X Capital Podcast to discuss VC fund strategies and building relationships with a special focus on the importance of clear communication with LPs.

U.S. and Europe Pre-Money Valuation Trends

By Kaidi Gao

Pitchbook's Kaidi Gao discusses the contrasting trends in pre-money valuations for VC-backed startups in 2023 between the US and Europe, noting a general decline in the U.S. across all stages of the venture lifecycle, except for seed stage, with a significant drop in venture growth stage valuations.  

Loss Ratios from 66 Early-Stage Venture Funds

By David Clark

David Clark, CIO at VenCap International plc, looks at the data from 66 early-stage venture funds backed by VenCap from 2010 to 2019 (all from established managers that backed ~4,000 companies) to see how the current climate has affected loss ratios.

The Data Revolution in Venture Capital

By Ryan Hoover & Vedika Jain

It's estimated that more than 75% of VC deal reviews will be informed using AI and data analytics by 2025. The data-driven revolution is making its way into the world of VC, and it's happening fast. 

How MIT Selects Venture Managers to Invest in

By Harry Stebbings

MITIMCo's Ryan Akkina joins Harry Stebbings on the 20VC podcast to share the manager evaluation process for MIT, how MIT builds its portfolio and his perspective on the LP markets today.

Featuring the Creators of OpenLP

New PitchBook Data Reveals that the Journey from a First to a Sophomore Fund Has Never Been More Daunting

By OpenLP, based on PitchBook Data

Historically (2006-2018), 63% of first-time managers were able to raise a second fund, but the current environment suggests a much tougher road ahead. We dig into emerging manager fundraising data in our latest thread.

VC Distributions Sink to 14-Year Low

By Marina Temkin

In 2023, distributions to LPs as a percentage of mature funds’ net asset values fell to the lowest point in nearly 14 years, according to PitchBook. Laura Thompson, Partner at Sapphire Partners, shared her perspective on what it takes for LPs to re-up with VCs that haven't returned much cash in the current climate.

From the Other Side: What Sapphire Partners Wishes More VC Managers Knew Featuring Nate Leung

By Earnest Sweat & Alexa Binns

What does it take to be successful on both sides of the VC equation - as an investor and an allocator? Nate Leung, Partner at Sapphire Partners, recently joined co-hosts Earnest Sweat and Alexa Binns on the latest Swimming with Allocators podcast to share how his prior experience as a VC and now an LP has shaped his perspective on the asset class today.

VC Deep Dives

VC Industry Outlook: Insights and Predictions from VC Managers and Limited Partners

By Allocate

What will LPs do in 2024? Allocate's VC Industry Outlook reveals a shift in LP strategies, indicating a move towards reevaluating their existing commitments and adopting a more discerning stance on new fund investments with insights from Sapphire Partners' Beezer Clarkson.

Venture Capital: Shedding the "Access Class" Label

By StepStone Group

StepStone Group's recent report examines why emerging and smaller funds are key to a venture portfolio, as well as their framework for identifying top-performing and high-potential managers.

What We're Reading This Month

Exclusive: How Emerging Manager Overture VC Raised $60 Million—Yes, in This Economy

By Allie Garfinkle

If you’re a VC, especially an emerging manager, you’re contending with high-interest rates, anxious LPs and far-reaching economic uncertainty while trying to raise millions. So, who’s succeeding right now, and how?

Nvidia Declares AI a ‘Whole New Industry’—and Investors Agree

By Asa Fitch

Big tech companies are continuing to pour cash into artificial intelligence at a breakneck pace, and based on the earnings update Wednesday from 

Ivy League Endowment Returns Depended on One Decision: VC or PE?

By Julie Segal

Michael Markov, founder of MPI, said in an interview “the dispersion between the best and the worst Ivies was defined by the type of private investments they held and the ones that were invested mostly in VCs were hammered this year.”

OpenLP is supported by Sapphire Partners.

Launched in 2012, Sapphire Partners is a Limited Partner seeking to invest in elite early-stage venture capital funds, across the U.S., Europe, and Israel.

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