Yulia Slavina

Venture returns compressed and competition surged, Tim Draper notes

Venture returns compressed and competition surged, Tim Draper notes
Most new venture funds struggle to survive

Around 10,000 new venture funds were launched between 2019 and 2022, but most of them have performed poorly and are not expected to raise a second fund.

Tim Draper described how much of that capital was spread widely among small seed groups, but market shifts, compressed returns, and increased competition have led to difficulties for these firms.

Draper Associates was recently named to Inc's 2026 Founder-Friendly Investors list, a recognition Tim Draper attributed to the entrepreneurs the firm supports, according to a previous report. Earlier, Draper Associates led the Series A funding round for Mogul Club after an update from Alex Blackwood in May highlighted the team's vision, as detailed in another article. These developments followed Draper's ongoing engagement with early-stage ventures.

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