This Week in Startups · Wednesday, July 1, 2026
Aline Lee discussed how appreciation in existing VC fund holdings might lead Limited Partners (LPs) to adjust their target venture allocations, potentially creating more capital for new investments. Mike Mayles noted his firm has returned significant capital, emphasizing seed funds' exit optionality.
“We have one LP that had a target venture exposure of 25% but because there's been so much appreciation from some of the larger fund holdings, they're at 45% venture exposure.”
“And so what will happen, uh, when they get the money back, you know, will like the percentage of like it's probably, you know, they want to have diverse portfolios, but I think it will help because I think some of them have been a little, um, hesitant to commit more to venture when they weren't getting money out.”
“we try really hard, uh, to, you know, have liquidity, uh, regardless of the environment. So we've, uh, uh, you know, we've returned a little over $350 million in the last two years.”