Venture funds based in the U.S. saw record fundraising in the first half of this year, but some regions saw little to none of that LP capital.
The Midwest took a huge fundraising hit in H1 2022, no matter which states you choose to include in the region. According to PitchBook data — we are combining the Great Lakes and Midwest regions for a broader view — $3.4 billion was raised across 20 funds. This shows that the region is not on track to match last year’s total of $9.7 billion across 81 funds.
In July, Chicago-based MATH Venture partners announced it would not be raising a third fund because it could not secure enough investor interest. This is despite 50 of the firm’s 72 investments remaining active and 10 exits under its belt.
This creates a disconnect because while LPs are shying away from the region, VCs are not.
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