Why Money Is Rushing Into Venture Capital
Canvas Ventures joins a parade of VC firms amassing larger funds this year, but some investors fear the music will stop.
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Venture capitalists may be storing up supplies for winter. With VC fundraising on track for its best year since the dot-com era, some investors say there's a rush to raise cash before it disappears.
Paul Hsiao, an investing partner at Canvas Ventures, said one reason the firm raised its latest fund sooner than planned was to avoid a “correction” in the market. He said the Silicon Valley firm couldn't afford to wait until later in the year or next year in case investors decided to put their “pencils down.” Canvas Ventures said Monday that it raised $300 million for its second fund, almost double the size of the first one from 2013.