Emerging managers have been on a roller coaster ride since the start of 2021. At first, funding was hot and they were able to raise a lot of money. But as the market cooled down, fundraising slowed down and they are now struggling to find money. This may change in the near future as investors become more interested in these young firms again.
emerging managers seem to be plateauing, raising a collective $1.62 billion in Q1. This is a far cry from the record-breaking $37.26 billion seen in 2022, and it’s also significantly less than the more than $55.81 billion raised in Q1 2019. It seems that these firms are starting to run out of ways to raise money – perhaps thanks to increased regulation and heightened investor scrutiny?
The trend of emerging managers raising less capital may continue in 2018, as the tough environment persists. This could be a indication that there is still plenty of volatility in the market, and that venture capitalists are not yet ready to commit more money to these firms.
A few key takeaways from the quote are:
-The stock market was very tough in 2022, and this caused people to be more cautious when investing.
-This has led to a decrease in investments in the stock market, which is affecting companies that rely on public investment.
Many people, including myself, had written off the young investors as foolish and reckless. After all, they had invested their money in swan songs like bitcoin and tulip bulbs. And then there was the celebrity endorsement debacle with rapper Kanye West… But despite all of that, I can’t help but be optimistic about these young investors. Sure, their