Key 昀椀ndings Here, we turn our attention to the money that keeps the 昀氀ywheel spinning. This chapter takes a look at how LPs and VCs have felt about the last year, what their priorities now look like, and examines the role of institutional investors in today’s ecosystem. While the majority of LPs reported an intention to maintain their VC an increasingly allocations across all asset classes, 35% stated an intention to attractive asset class increase their allocation to VC next year - the most of any asset class. to LPs VCs and LPs agree that navigating a tougher fundraising environ- VCs and LPs are aligned ment will be a real challenge over the next 12 months. They are on future challenges also both concerned about the impact of a muted exit landscape. In 2022, just 0.024% of pension fund AUM was invested into Euro- Pension funds are still pean VCs, in line with the average of the last 昀椀ve years. The scale punching bellowing of European pension funds means even a small increase in their share of AUM dedicated to VC would transform the ecosystem. their weight