Despite a distribution drought and poor performance, institutional investors remain interested in venture capital (VC) funds, as revealed in a recent survey by Venture Capital Journal. This year’s survey indicates a positive shift, with 33% of investors planning to increase VC investments, up from 20% last year. Notably, 48% anticipate making more commitments to private markets. While 63% of LPs reported their VC funds underperforming against benchmarks, optimism is rising, with 38% expecting future outperformance. Additionally, interest in late-stage/growth funds is increasing, and 67% of LPs are open to backing emerging VC managers, showcasing a more favorable outlook overall.