In the first nine months of 2023, European VCs raised €13.9 billion. According to a recent survey made by Sifted, a majority of VCs have spoken to over 100 LPs in the past two years about fundraising. Approximately 56% of European VCs haven’t returned any capital to their LPs in the last 12 months. AIN.Capital shares the key facts from the research.

Who’s fundraising?

During the survey, 60% of VCs said they are currently fundraising. Only 14% answeres they’d do so in the next 6-12 months, and 19% plan to fundraise in the next 12+ months.

Among the 111 VCs who responded to Sifted’s survey, 70% invest at pre-seed/seed and 22% at Series A. 95% of respondents were European investors who invest in European startups; just 5% were investors based elsewhere in the world investing in Europe.

Participants in fundraising

  • 95% of respondents have Fаamily offices and high-net-worth individuals as LPs already. 43% have corporates as LPs, while 42% have fund of funds as investors.
  • Almost 15% have raised from a pension fund, 14% from a sovereign wealth fund, and 10% from an endowment (foundations run by educational or cultural institutions).
  • 42% of European VCs said they’ve raised from state-backed LPs.
% of European VCs with the following kinds of LPs
  • The vast majority of respondents’ LPs are based in Europe.
  • 38% of European VCs have a UK-based LP, while 20% have a German LP.
  • 18% of European VCs have North American LPs, and just 8% have raised from an Asian LP and 4% from a Middle Eastern LP.
  • Only 8% of respondents had a French investor, compared to 15% that had a Nordic LP.

Prohibited categories for LPs

  • 17 VCs claimed they would turn down LPs with links to Russia. 10 said they would turn down Chinese LPs, and another 10 said they would turn down investors from the Middle East.
  • 12 VCs said they’d avoid LPs whose money originated from oil and gas, or tobacco
  • Dozens of VCs said they wouldn’t take money from any LP that didn’t pass their anti-money-laundering checks. Nine VCs said they’d take money from anywhere.

Why are some LPs not interested?

56% of European VCs haven’t returned any capital to their LPs in the last 12 months. Somes LPs blamed high interest rates, market conditions and geopolitics for its.

However, LPs don’t seem to be trying to exit their positions in VC funds: 81% of respondents said no full or partial LP stakes in their fund had changed hands in the last 12 months. 9% said they had — and the final 10% said they were considering it.