PitchBook & NVCA – Venture Monitor, Q3 2024

Distributions are a major concern in the current venture market, with IPOs and large M&A deals scarce. The lack of exits is putting pressure on the market, despite a rate cut from the Federal Reserve. Cash back to LPs is at a historically low rate, causing challenges in the market. The investor-friendly market has led to high deal counts, but capital calls have slowed as GPs are cautious about deploying funds without receiving returns. The ratio of deals to deal value is high, with a large portion of funding coming from large corporates to a few AI companies. LPs may need to reevaluate the risk in their portfolios if the market continues to ask for funds without providing distributions.