In a slow exit market, venture capital firms are turning to liquidity strategies typically used in private equity. One of these is the creation of continuation funds to extend the life of investments beyond a 10-year fund term and to provide returns to limited partners. Crunchbase News recently spoke with Mathew Eapen, partner, and Shane Goudey, partner and chair of the venture funds practice at law firm Sidley Austin. They advise private investment funds, including venture capital and private equity, on their formation and ongoing operations. That liquidity pressure has ratcheted up in recent years as venture firms have raised multibillion-dollar funds from endowments, pension plans, sovereign wealth funds, fund of funds and gatekeeper organizations with their own fiduciary asset management duties. In 2022, Andreessen Horowitz raised $9 billion across three funds while Lightspeed Venture Partners raised $6.7 billion across three funds. New Enterprise Associates raised $6.2 billion...
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