VC Funds: Six months to first close on 40-60% of final close size.

Market Structure, Operational Insights 1 Minute

This is the last post on this topic, but there were some more questions.

It takes about 6 Months to Reach First Close

Distinct count of Managers broken down by Vintage Year vs. Months to First Close. (Source: Preqin)

This chart is showing the median per vintage year, together with the 1st and 3rd quartile boundaries and a green average line (with a horrible R-Squared of 0.0087).

Months taken to Reach First Close for each Year of Vintage. Size shows Final Close Size (mn USD). The data is filtered on Months taken to Reach First Close, which keeps non-Null values only. (Source: Preqin)

In a first close, VC Funds close on a median of 50% of total capital raised

Regardless of final close size, 40-60% is pretty much the median across many fund sizes for a first close:

 

Percentage Raised at First Close for each Year of Vintage broken down by Final Close Size [$M]. The data is filtered on Percentage Raised at First Close, which keeps non-Null values only.  The Final Close Size [$M] filter excludes (n/a). (Source: Preqin)

Published by Thorsten Claus

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