DFJ Is Latest Victim of Droopy Fund-Raising Environment
Everyone knows the fund-raising market has gotten more difficult, but a table I put together for a webinar I’m hosting tomorrow shows just how bad it is. Take a look below. Just skimming through a couple of months of coverage in Venture Capital Journal and PE Week, I was able to identify at least 16 firms that came up short of their goals. In one case, a firm abandoned fund-raising altogether and in another the firm postponed it till the market improves. I don’t think we’re going to see any improvement any time soon—for GPs, anyway. In fact, Private Equity Insider just reported today that Draper Fisher Jurvetson has cut the target of its 10th fund from $600 million to $400 million and it’s offering better terms for LPs, including carried interest that starts at 20% instead of 25% and is based on performance benchmarks.
