Global LP Perspectives in a Changing Market
Tales from the road: Reflections from four weeks across Sydney, Melbourne, London, Montreal, and Dallas
Over the past month, I've had the privilege of connecting with Garuda Ventures’ global community, criss-crossing five cities on three continents, trading notes on private markets, AI, and the macro environment with our LPs, founders, and friends.
And while there were certainly regional differences across Australia, the UK, and Canada, similar themes emerged across almost all the conversations.
Show me the money
The most pressing theme across every conversation was liquidity, or the lack of it. Irrespective of geo, exposure to venture, or family office or institutional investor, LPs globally are waiting to see returns.
In Australia, this dynamic is particularly acute since, as one LP shared, "Everyone is waiting for Canva." Having had the privilege of partnering with Mel and Cliff back in 2012, I have been able to watch that story unfold from the beginning. Doing $3B in revenue with 220 million monthly active users, it is a matter of when not if the Australian behemoth goes public, but the when is still important, especially as capital calls still keep coming! (FWIW: Cliff, Canva’s Co-Founder and COO, gave me the party line when I asked him while visiting with him at Canva’s Sydney office…😊)
The wait is challenging, though. LPs who've been building venture allocations over the past 5-7 years are sitting on portfolios with mature companies but limited liquidity options which forces a choice: stay committed to the asset class and keep deploying, or retreat entirely until liquidity comes and then start deploying.
AI everywhere
But here's the paradox that is being fully acknowledged by LPs around the world: stepping back from venture now means missing the start of the next major technology shift. Every LP I spoke with, regardless of their current liquidity frustrations, viewed AI as a generational opportunity they can't afford to ignore and were interested in the market perspective I brought from the Valley.
"We know we're in the early innings of something massive," one European family office principal told me. "The question isn't whether AI will transform everything, it's whether we'll have exposure to the companies leading that transformation."
This creates genuine tension. LPs are frustrated by extended hold periods in their existing portfolios, but they also recognize that the companies being built today around AI infrastructure, applications, and vertical solutions could define the next decade of returns. For some, the fear of “missing out on the next Google or Microsoft" as one put it, outweighs concerns about liquidity timing.
The US and Silicon Valley's Gravitational Pull
While LPs in international markets want to deploy in country and support the local startup ecosystems, one reality emerged consistently through discussions: the US (and particularly the SF Bay Area) remains the dominant market for tech and AI innovation and where everyone is interested in exposure.
One Australian multi-family office expressed this particularly directly: while waiting for Canva to provide local market validation, they're simultaneously seeking exposure to the AI innovation happening primarily in Silicon Valley. "We can't wait for the Australian AI ecosystem to mature…The opportunities are being created now, and they're being created in the US."
While local markets have pockets of innovation, the pace, scale, and concentration of AI development in the Bay Area is undeniable. Founders want to come here for visits, LPs seek exposure to companies being built here, and it's clear that AI innovation flows through San Francisco, from the foundational model layer through to the application layer.
Looking ahead
LPs are more sophisticated than ever, with global perspectives and high standards for partnership. Those who are investing in the venture asset class are doubling down on managers with authentic Silicon Valley access and operating experience. Those stepping back risk missing the AI wave that could define the next decade of technology investing.
For fund managers, this environment rewards clear differentiation and genuine value creation. LPs want partners who can navigate extended hold periods while positioning for the AI opportunity ahead, and who can appropriately act as good fiduciaries of capital. And more than anything, partners who genuinely care about building authentic relationships over multiple decades. The relationship between LPs and GPs isn't just evolving, it's deepening, built on the recognition that the best partnerships are forged not during the easy times, but while navigating uncertainty together.
Thanks to everyone I met across the world for taking the time to connect. And thank you to Arpan P., Arjun A, and Rupali D. for reading drafts of the post.