RAISE 2023 Global Summit: What Does the Applicant Data Say for Capital Allocation? (Part 1)
By Ben Black, Akkadian Ventures
Every July, the energy around the RAISE Global Summit amplifies as we conclude our application period for emerging ventures funds. This year was no different, with the application window coming to a close on June 30, 2023. As always, energy radiating from the GP community did not disappoint. This is evident from the surge in our applicant numbers.
In Part 1 of our comprehensive application review, we will contrast and compare the statistics from 2022 and 2023. Our aim is to provide an aggregate view of the GP Application Data. We will be releasing high-level data weekly on the RAISE blog over the next month. Please check back for more.
This year, we saw a substantial increase in our applicant pool. We had 665 qualified funds complete the RAISE application, marking an impressive growth of approximately 33%. These applications were reviewed by the 30-member Limited Partner Selection Committee in early July. Their daunting task? To assess each applicant and identify the 100 funds that best exemplify the criteria the selection committee is looking for. In addition, the scores are used to select the 20 funds that will present on the main stage. While we can’t be certain that the 100 selected are “the best” funds, we do know that these firms stood out to the committee as funds they thought limited partners would want exposure to at RAISE.
The data demonstrates what most people in the industry know: the fundraising market is more difficult than last year. In this environment, bringing together dedicated limited partners with a group of exciting and curated emerging managers is more important than ever.
In examining the broader shifts among GP applicants, the average total firm-wide capital commitments of emerging managers experienced a significant decline, moving from approximately $78M down to $54M, a 30% decrease. Furthermore, applicant funds had lower fundraising targets than last year, declining from $72M to $64M on average.
Given the current economic climate, it’s no surprise that the emerging VC market has contracted.
There is a significant benefit for LPs, however, to the increase in the applicant pool. We can expect that the pool from which the committee is selecting is more interesting and diverse than ever before. Indeed, the committee had a tough job curating such a large group of impressive funds, but the numbers suggest an incredible group will convene in the Presidio on October 26th.
We invite LPs to join us at RAISE to meet these remarkable emerging managers. Ready to embark on your own unicorn hunt at the 2023 RAISE Global Summit?
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