Citing information shared with staff on Tuesday, the firm has also laid off most of its staff and will no longer make new investments, The Information reported on Wednesday. The news comes just eight months after securing $570 million for its Fund VII to invest in high-growth software startups.

This unexpected turn of events may be indicative of the growing pressure faced by venture capital firms to generate returns, especially in a period of higher interest rates. Documents reveal that the 2020 fund of OpenView Venture Partners has experienced paper losses. In a memo circulated to startups it had previously backed, the firm expressed a lack of confidence in its ability to fulfill commitments, following thorough discussions and evaluations among the partners.

“The sudden fall of the firm, which employed at least 74 people and had raised a total of $2.4 billion, could be a sign of rising pressure on VC firms to generate returns in an era of higher interest rates,” The Information reported.

We covered OpenView back in March after the firm closed $570 million in funding for its seventh fund (Fund VII) to invest in high-growth software startups. The latest fund, which represents OpenView’s largest funding to date and a 25% increase over the firm’s sixth fund, will provide greater support to entrepreneurs during this difficult macroeconomic period.

Since its inception in 2006, OpenView has raised a total of $2.4 billion across its seven funds and has partnered with more than 60 companies including Datadog, Calendly, Axonius, JumpCloud, UserTesting, and Workfront, among others. The firm had a team of nearly 80 members, which resulted in a ratio of two and a half people per portfolio company.

Before its demise, OpenView was led by veteran investors including Scott Maxwell, Mackey Craven, and Blake Bartlett, along with a next generation of partners who joined the partnership in its sixth fund.

Back in March, OpenView partner Blake Bartlett said: “During this time of turbulence in the financial markets, OpenView is excited to have a new fund to support software startups. We are grateful for our partnership with world-class limited partners, which makes it possible to support these promising companies as they build the future.”