Headlines around emerging manager VCs are…not good lately.
Yes, it's true that a large percentage of the capital raised by VC funds this year has gone to the top 10 firms.
Mega funds raise mega funding. Evergreen headline.
But dig beneath the surface and things aren't so bad for true emerging managers.
1. Emerging managers on Carta (defined here as any fund that raised less than $100M) are on track to raise about $4 billion this year, basically equal to 2024.
2. Total new funds in this category on track to be down ~8% from 2024...not great, but much better than the 18% and 44% (!) declines over the past 2 years.
It's hard out there, no doubt. But if we're honest as an industry, we can admit that there was too much funding into the asset class in 2021 and early 2022. This overfunding for funds was mirrored in the overfunding for companies.
So a correction was bound to happen and it did and it sucked.
But the category has effectively stopped declining on the fundraising side and I wouldn't be surprised if the back half of 2025 was substantially better than the front half. There is some seasonality in venture fundraising from LPs that augurs well for a late-year boost.
Emerging VCs tend to be first supporters of new startups. We need more of that.
Onwards!
Subscribe here if you're new to the Data Minute. Forwarding encouraged!
Peter Walker
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
