How long should a 2 year old birthday party be?

My daughter's first birthday was three hours just because we booked a venue (lots of family, first grandchild for both sides so it was a huge event).

This time we're only having maybe 15 people (my husband, daughter, and I included). We were hoping to have the event be 2 hours. Is that enough time or too short? I figure that gives lots of time for playing, maybe a few games for kids, and then cake and presents.

How long would you go for?