It really depends on how well established the fund is.
LPs are really looking for 20%+ IRR to make the hyper-illiquid, long-term risk worthwhile. Maybe really more than that if they are being honest. Given that venture is the most illiquid, earliest-stage category of all, 25% IRR really probably is necessary to honestly make it worth it.
Insane funds can do much better, 50-70% or higher IRR.
And the best tiny funds can do better, just because of the law of smaller absolute numbers in venture.
Best and worst venture funds of the past decade-VCJ fund performance report – PE HUB
But backing it into multiples, at the end of the day, if you have an established brand as a VC firm that LP want to stay with — 2x net of fees is good enough to get another fund. LPs want 3x net or more, but 2x net is “good enough” to re-up. And even, you can do less if it looks like your last 1-2 funds are getting to >=2x net but not there yet.
That can back into as low as a low-teens IRR, depending on entry time / time horizons.
