A 15 year fund life rather than 10 should be the standard for early stage venture capital. This slight change would benefit investors, companies and managers. The rationale is simple and makes common sense given the nature of the strategy. How could both late stage and early stage VC both have a 10 year term? #venture
Tash S.
3w
Could you explain how this would benefit the LPs? How is it different depending on 1. stages: early and late stage; 2. tech basis: driven, based, deep tech, etc. 3: consumer and B2B?
I second
Service Engineer | MS in Finance, General
3wCompletely agree. earlystage investments inherently need more time to mature. A 10-year term pushes for exits that may not capture the full potential of these companies. Extending to 15 years would allow for a more natural growth timeline, benefiting everyone involved. This change would definitely align the fund structure better with the reality of early stage investing.