VC10X - 900 Fund Ones Raised in 2021/22. Only 200 Made It to Fund Two - Matt Curtolo, Advisor to LPs & GPs

If you compare today's LP market with 2021, what assumptions are GPs still making that no longer hold true?

Um, I can't remember which GP shared the data point, but there was over 900 fund ones raised in '21 and '22, and if you roll that clock forward to early '26, only about 200 have raised successor funds to date. So that's a 20% success rate, 80% attrition.

How are GPs positioning today when they're fundraising?

I will see at least 400 decks this year. There was an old stat from, uh, one of the folks who worked at DocSend and how much time people spend on a deck when they're reviewing it. It's like two and a half minutes.

And what's the biggest mistake you see GPs make when they tell their fund story?

They depersonalize the story. Uh, because at the end of the day, as an LP, I'm buying you, not necessarily your fund.

Hey everyone, this is Prashant and I'll be host for the VC10X podcast, and today we have Matt Curtolo with us. Matt is an independent GP and LP advisor with over 20 years in private markets across Hamilton Lane, MetLife, and Allocate. He now advises GPs on fundraising and positioning, and this is his third time on the show. Over 900 fund ones were raised in 2021 and 2022. Only about 200 have raised a successor fund since. We spend this conversation on why and what separates the managers who make it to subsequent funds from the ones that don't. So without wasting any time, let's dive straight in. This episode is brought to you by Podcast NX, my podcasting agency for VCs. We help VCs start and run branded podcasts that can serve as their entire content engine. Turn the conversations you're already having into a machine. One recording becomes your presence on LinkedIn, Spotify, YouTube, and email. Don't just build another VC firm. Build a firm that can stand out to LPs and one that founders can brag about having you on their cap table. Check out our services at podcastnx.com. I'll put the link in the description below. Now, enjoy the episode. Hey Matt, so good to have you on the VC10X podcast. How are you doing?

I'm doing great, Prashant. Great to see you again. Thanks for having me on.

Absolutely. It's a pleasure having you back on. It's actually your third time on the podcast, and second time if you talk about individual episodes, and one was the roundtable in that, but always a pleasure talking to you.

Likewise. I'm looking forward to our conversation today.

Lovely. Let's, let's kick this off. So first is, if you compare today's LP market with 2021, what assumptions are GPs still making that no longer hold true?

Oh man. [chuckles] 2021, uh, if you look at the numbers, it's an anomalous year based on pretty much every stat: number of funds raised, capital raised, exits. So I feel like most things have changed since then, and, and GPs have adjusted. So I'd say even the world, so much has changed in the world with geopolitics and then, uh, technology and AI. I, I was-- Funny, I was talking to somebody yesterday, and we said, uh, it feels so ubiquitous now, but ChatGPT came out in November 2022. So we're less than four years into this, and it feels like this has been a part of our world. But, uh, it's interesting you ask about '21, 'cause I