TechCrunch just launched a closed-door LP Track at Disrupt 2025 as venture capital faces its biggest liquidity crisis in years. The invitation-only sessions tackle the harsh reality of extended exit timelines, slowed distributions, and increasingly selective limited partners who are recalibrating their entire venture strategy.
The venture capital industry is getting a reality check, and TechCrunch is creating the room where it happens. The company just announced StrictlyVC's new LP Track at Disrupt 2025, an off-the-record series designed specifically for the liquidity crisis reshaping venture capital. It's the first time the conference has dedicated exclusive programming to the LP perspective during what many are calling the industry's toughest fundraising environment in over a decade. The timing couldn't be more critical. Exit activity has plummeted to levels not seen since the 2008 financial crisis, with PitchBook data showing venture-backed IPOs down 75% year-over-year. Meanwhile, secondary market transactions have stalled as valuations remain stubbornly high despite the public market correction. The result: LPs sitting on massive unrealized portfolios while facing pressure from their own stakeholders for returns. Cendana Capital, which has backed over 80 funds in its 15-year history, is co-hosting the track. The firm's Michael Kim will headline "The Liquidity Reckoning," alongside Makena Capital's Lara Banks. According to sources familiar with the programming, the sessions will address how LPs are fundamentally changing their approach to new commitments, portfolio construction, and GP relationships. "We're seeing LPs who historically wrote checks based on relationships now demanding detailed cash flow projections and exit visibility," one GP told The Information last week. The shift represents a seismic change from the era of abundant capital that defined venture investing from 2020 to early 2022. Kevin Hartz of A* will provide the GP perspective on navigating these strained relationships. Hartz, who founded Eventbrite before transitioning to investing, brings a unique founder-turned-investor viewpoint to discussions about managing LP expectations through market cycles. His session, "GP Perspectives on LP Relationships," is expected to address the practical realities of maintaining trust when funds are struggling to return capital to their investors. The exclusivity factor amplifies the event's significance. Unlike typical conference programming, the LP Track is limited to Investor Pass holders and operates under Chatham House rules - meaning participants can use the information shared but cannot reveal sources. This approach mirrors the closed-door nature of actual LP-GP negotiations, where candid discussions about fund performance, market conditions, and strategic pivots happen away from public scrutiny. Industry data underscores why these conversations matter now more than ever. According to , the median time to exit for venture-backed companies has extended to over eight years, while distribution rates have fallen to their lowest levels since 2009. Simultaneously, the number of "zombie" funds - those unable to raise follow-on capital - has tripled since 2022. The programming also includes "Inside the LP Selection Process," where Cendana's Michael Kim and Kelli fontaine will detail how LPs are actually making investment decisions in 2025's competitive environment. With over 3,000 venture funds actively fundraising according to , LPs have become increasingly selective, often focusing on managers with proven track records and clear differentiation strategies. The session promises to reveal what actually gets a GP noticed and funded when capital is scarce and options are abundant. For GPs struggling to raise new funds, the insights could prove invaluable. Traditional fundraising timelines have stretched from 12-18 months to over two years in many cases, according to venture formation data tracked by . The extended cycles have created a cash flow crisis for many firms, particularly emerging managers who lack the management fee stability of larger, established funds. The October 28 event takes place at San Francisco's Moscone West, with networking beginning at 3 PM before the formal programming starts. The location choice is strategic - Moscone West has hosted some of the industry's most significant gatherings, from Apple keynotes to Salesforce conferences. For venture insiders, it represents neutral ground where competitors can share intelligence about market conditions and LP sentiment.