Insight lowers fund target to $15B

 

New York-based VC firm Insight Partners has lowered the fundraising target of its 13th fund from $20B to $15B.  So far, the firm has secured commitments worth $2B toward the new fund. However, it informed institutional backers about its decision citing the "great reset in tech." The firm still has about $10B of dry powder available from its previous funds but will slow down its deployment as it is "not seeing a volume of companies that [it is] excited about." The firm has deployed $14B out of the $20B raised for its 12th fund.  Insight participated in deals worth $25B in 2021 before slowing down its deployment to $14.4B the following year, in line with the global VC funding slump.  Insight told investors, "In 2021, we saw exceptional growth in technology demand but challenging valuations and a lack of discipline around cost structures and rates of cash burn. We believe the great reset has solved those two challenges." U.S.-based VC firms raised record-high funds worth $171B in 2022, exceeding the previous record of $154B set in 2021.  However, the trend reversed this year, with U.S. VCs raising only $12B in Q1 2023.