Why LPs are tiring of the ‘next big thing’
19.03.2025 – Contributors
LPs have seen this before. Every few years, a new investment theme dominates private markets. Crypto, climate tech, AI, Web3 – each arrives with soaring promises, GPs pivoting their thesis overnight, and a rush of capital chasing the trend.
Then the market corrects. The hype fades. And LPs are left with a portfolio full of funds that followed momentum instead of fundamentals.
In 2025, LPs are more sceptical than ever of the ‘next big thing’. Not because they don’t believe in innovation, but because they’ve seen what happens when capital moves faster than conviction. The best fundraising strategy isn’t about being in the hottest sector. It’s about having the clearest investment discipline.
The data: Why LPs are burned out on trend-chasing
LPs have backed enough hype cycles to know that many fail to deliver. In 2021, over $32 billion was invested into crypto, only for funding to collapse by 80% two years later.