Apr 23, 2024 - Business

Scoop: Shasta Venture fails to get approval for continuation fund

Illustration of a cursor hand making a stopping gesture

Illustration: Sarah Grillo/Axios

Shasta Venture, a venture capital firm whose investments have included Nest and Canva, failed to get approval from its limited partners to form a continuation fund, Axios has learned.

Why it matters: With the ongoing dearth of exits, hangover from overinflated valuations during the pandemic, and tough fundraising market for VCs, this may be a path that more firms try to take.

Catch up quick: Recently, Shasta asked its LPs to approve moving nearly all assets in its most last fund (raised in 2017) to a continuation fund, priced at a bout $0.65 on the dollar.

  • LPs had the option of approving the plan, and either sell their stakes or roll into it — or not vote at all in support of the proposal.
  • Two-thirds approval was needed to move forward.

Shasta Ventures has not responded to a request for comment.

Go deeper