New report combines original research, industry interviews, and decades of venture industry data to examine why first-time venture funds receive the smallest share of LP commitments in nearly three decades despite having historically outperformed established peers
NEW YORK, NY AND TEL AVIV, ISRAEL / ACCESS Newswire / September 8, 2026 / Team8 published The Emerging Manager Paradox, a new research report examining one of venture capital's most striking paradoxes: Why do first-time venture funds receive the smallest share of institutional capital in nearly three decades despite historically producing some of the industry's strongest returns?
Drawing on original research, analysis of decades of venture industry data, and interviews with leading limited partners (LPs), general partners (GPs), and industry experts, the report explores the structural factors shaping how institutional investors identify, evaluate, and support the next generation of venture firms. The report also includes one of the first comprehensive studies of the career paths of the investors who appeared most frequently on the Forbes Midas List over the 2016-2025 period, exploring the connection between investors' professional backgrounds and sustained venture success.
Among the report's key findings:
First-time venture funds have historically outperformed established peers by median net IRR premiums of up to 15 percentage points.
Funds under $50 million now receive the smallest share of LP commitments in almost three decades.
Nearly 70% of the most consistently recognized investors on the Forbes Midas List were former founders or operators before becoming venture capitalists.
Taken together, these findings reveal a persistent structural gap between how venture firms are built and how institutional capital is allocated. The report examines this disconnect from both the GP and LP perspectives before concluding with a set of design principles intended to reduce structural friction, improve early manager evaluation, and strengthen the long-term development of venture firms.
"How LPs identify tomorrow's leading venture firms is one of the most important questions facing venture today," said Aaron Dubin, Partner at Team8 and author of the report. "Great venture firms are built long before they're institutionally validated. If we can reduce the structural friction that delays the institutional backing of exceptional managers, the entire venture ecosystem stands to benefit."
The full report is available at:
https://team8.vc/report/the-emerging-manager-paradox/
About Team8:
Team8 is a venture fund with $1.8B in AUM that builds and invests in companies tackling the world's biggest challenges in cyber, software infra, fintech, and digital health. Team8's proven methodology spans from vision to impact. Its signature venture creation and capital models, village of world-class leaders, and the most thorough validation process are all designed to position founders for success.
Contact Information:
Ofir Zimber
ofirz@tellny.com
+1 3478435223
SOURCE: Team8
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/team8-publishes-the-emerging-manager-paradox-a-new-research-repor-1217917
