Fund of funds are starting to play a different role for venture LPs

Fund of funds (FoF) were created to serve as a bridge for LPs to get access to managers they couldn’t back otherwise. But in an environment where funds are not seeing consistent support from their existing LPs, and there are more venture funds than ever, is their role still relevant?
Fund of funds fundraising — say that five times fast! — has declined for years. To compare, traditional U.S. venture firm fundraising set a record in 2022 with $162 billion. U.S.-based VC FoF raised just $400 million in the first quarter of 2023, according to PitchBook, and $3 billion in 2022. This compares

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