LPs are abandoning the US Midwest this 12 months (and it would not make sense)

Enterprise funds primarily based within the U.S. noticed record fundraising within the first half of this 12 months, however some areas noticed little to none of that LP capital.

The Midwest took an enormous fundraising hit in H1 2022, regardless of which states you select to incorporate within the area. In keeping with PitchBook knowledge — we’re combining the Nice Lakes and Midwest areas for a broader view — $3.4 billion was raised throughout 20 funds. This reveals that the area shouldn’t be on monitor to match final 12 months’s complete of $9.7 billion throughout 81 funds.

In July, Chicago-based MATH Enterprise companions announced it will not be elevating a 3rd fund as a result of it couldn’t safe sufficient investor curiosity. That is regardless of 50 of the agency’s 72 investments remaining lively and 10 exits underneath its belt.

This creates a disconnect as a result of whereas LPs are shying away from the area, VCs are not.

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