We didn’t even make it one week into the new year without a venture capital fund announcing that it’s shutting down.
Jai Malik, founder of industrial startup–focused fund Countdown Capital, explained his decision to call it quits in a four-page letter to his limited partners this week. Not once did he mention the downturn in VC that’s made raising capital harder, nor did he talk about rising interest rates or layoffs. Instead, he spent paragraphs reflecting on how multistage funds with more firepower to go after early-stage deals are making it impossible for small funds like his to generate the returns they need. It’s a reminder that macroeconomic headwinds aren’t the only challenge plaguing the underdogs in venture capital.
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