VC Firm Greycroft Cuts Five Investors After Missing Fundraising Target

Greycroft, a New York venture capital firm that has backed Bumble, Venmo and Axios, is laying off five investors, the firm confirmed, after it failed to reach fundraising targets earlier this year.  It’s also backing away from healthcare and fintech investing.

The firm disclosed in April that it had raised a total of $980 million for two new funds, about 40% less than its initial target set in early 2022. While small, the cuts represent a rare example of layoffs in the VC industry. Although tens of thousands of employees at startups and big tech have lost their jobs over the last two years, most VCs firms have largely avoided such cuts until now. That’s likely to change as firms struggle to raise new funds.