The median VC fund closed in 2021 hit $64M, continuing a multi-year trend that has seen average fund sizes steadily increase. Interestingly, the median first-time fund raised in 2021 jumped to $66M and, in doing so, actually exceeded the median follow-on fund raised during the same period for the first time on record.
It's hard to say if this is a trend that may persist, but it'ss certainly illustrative of the potential to achieve positive outcomes for first-time fund managers that have the determination and persistence to withstand an often long and winding path to a final close.
Furthermore, there are definite differences across geographies, whereby Germany, Austria and Switzerland (DACH), and the UK & Ireland have a median VC fund size nearly double the size of the other European regions. This is perhaps less surprising given the relative maturity of these ecosystems, which has allowed them to raise larger successive funds.
Regardless, the increase in fund sizes speaks to the larger opportunity set available in Europe. As strong European companies become more numerous, it is crucial that European VCs and thereby European LPs have the necessary funding to capitalise on these opportunities.