Venture Capitalists Find Silver Linings Amidst Grim Fundraising Forecast at the SuperVenture Conference

Venture capitalist heavyweights gathered in the historically significant city of Berlin for the SuperVenture conference filled the lobby of the Hotel Palace with a flurry of fervor and dialogue. Compounded by the larger gloom around fundraising, a sense of both unease and optimism hung palpably among investors. The players in the venture capital ecosystem engaged in spirited discussions around how European venture capital has developed over the years and there were some reasons to celebrate.

However, on the other side of the ‘city’, the landscape wasn’t as rosy. Amidst the thriving hot-topics, the DPI desert lay bare, underscoring the challenging fundraising environment for VCs. This term refers to the scarcity of money returned to LPs, an issue that has made fundraising a persistent challenge for venture capitalists. Despite the widespread sentiment of a difficult fundraising atmosphere, most investors are girding themselves for a lengthy fundraising journey, as pointed out by Rob Greenwood, the senior director of fund investments at British Business Bank. He noted that the capital invested was becoming more highly concentrated in a fewer number of larger funds.

The narrative of a tough fundraising environment is longstanding, raising questions on what it will take to shift the tides. Will VCs have to up their game in secondary market activities or urge their portfolio companies to sell to clear LPs’ returns and secure the next financial backing? Will a recalibration of the U.S. tariff and geopolitical machinations bring about more certainty? Or is the discussion going to be the same at next year’s SuperVenture conference? It remains unknown at this point. Nevertheless, several venture capitalists, including HV Capital, are relentlessly back in the market seeking fresh funding, highlighting the unquenchable spirit permeating the venture capital industry.