Stark gap in perception between VCs and LPs It’s sometimes said that VCs and LPs speak different languages, and are therefore not always aligned in the way they think or act. This mismatch in expectations is highlighted by a stark gap in the perception of VCs and LPs when asked to comment on the challenges faced by LPs in relation to their venture capital investments. VC respondents were mostly likely to cite reduced risk appetite, liquidity issues from a lack of distributions, and reallocation to focus on other asset classes as the perceived challenges. In contrast, while liquidity issues also ranked second amongst LP respondents, the challenges posed by faster than expected fund re-up cycles and product proliferation by GPs were far more likely to be cited by LPs. Interestingly, large perception gaps are visible across almost every possible perceived challenge and highlight a potential lack of understanding when it comes to the actual challenges faced by LPs. What challendges, if any, do you believe LPs faced when investing in venture GPs in the past 12 months? What challenges, if any, have you experienced in relation to your VC programme strategy? Notes: LP and VC respondents only. Respondents who selected “none of the above” and “other” are excluded from data. Sources: Number do not add to 100 as respondents could choose multiple options. | 192