Earlier this week, TechCrunch first reported that Lux Capital was raising money. What stood out was the firm ditching its opportunity fund and combining its early- and late-stage strategies into one vehicle that will mainly focus on early-stage deal-making. This came just weeks after Y Combinator announced it was pulling back from its late-stage strategy too. At first, I thought these were just the first few indicators that 2023 would likely be the year the opportunity fund trend dies, but of course, it’s not that simple. I think whether to raise an opportunity fund will become a much more debated question for firms looking to raise money this year. I think we will see significantly less of them, but there will still be firms raising them with good reason. Khosla Ventures and Canaan appear to be among these: Back in January, Khosla started fundraising for a slate of new funds, including an opportunity fund, and on Thursday, Canaan said it had raised $850 million across two funds, its flagship early-stage fund and a late-stage strategy, my colleague Connie Lozios reported.
To raise an opportunity fund this year or to not raise an opportunity fund? by Rebecca Szkutak originally published on TechCrunch