Small venture capital firms continue to face headwinds raising capital in 2025.
By the numbers: As of July 1, U.S. VCs with less than $250 million AUM have raised just $1.41 billion across 27 funds, per PitchBook.
- At their peak in 2021, VCs with less than $250 million AUM raised $23.1 billion in the U.S. across 506 funds, according to PitchBook. In 2024, total capital raised fell 74% to $6 billion across 138 funds.
- In 2024, 30 firms raised 75% of all capital raised by VC funds in the U.S., and nine took in $35 billion — half the total raised.
- During the same period, emerging firms outside of the top 30 closed on 14% of all U.S. VC commitments.
The big picture: Fundraising remains constrained by historically low distribution rates and limited LP liquidity, per PitchBook.
- With traditional VC fund investors stepping back, fundraising cycles are stretching longer, hurting smaller and midsized funds.
- Cherryrock Capital, which launched in 2023, closed a $172 million Fund I — the largest first-time fund of 2025 so far.
What we're watching: The secondary market is expanding as low liquidity continues to pressure LPs. VC secondary dry powder has more than doubled since 2022, according to PitchBook.
