Venture Capital Fundraising Activity Registers Second Consecutive Quarterly Decline in the Third Quarter of 2009
12 Oktober 2009 - 2:00PM
PR Newswire (US)
NEW YORK, Oct. 12 /PRNewswire/ -- Just 17 venture capital funds
raised $1.6 billion in the third quarter of 2009, according to
Thomson Reuters and the National Venture Capital Association
(NVCA). This level represents the smallest number of venture funds
raising money in a single quarter since the third quarter of 1994
when 17 funds were also raised and the lowest level of dollars
committed since the first quarter of 2003 when $938 million was
raised. Fundraising by Venture Funds Number of Venture Year/Quarter
Funds Capital($M) ------------ --------- ----------- 2004 218
19,154.4 ------------ --------- ----------- 2005 242 28,962.7
------------ --------- ----------- 2006 242 31,925.0 ------------
--------- ----------- 2007 251 36,064.9 ------------ ---------
----------- 2008 224 28,604.6 ------------ --------- -----------
2009 87 8,374.6 ------------ --------- ----------- 3Q'07 77 8,595.8
------------ --------- ----------- 4Q'07 86 12,322.5 ------------
--------- ----------- 1Q'08 74 7,228.4 ------------ ---------
----------- 2Q'08 82 9,284.5 ------------ --------- -----------
3Q'08 63 8,497.0 ------------ --------- ----------- 4Q'08 49
3,594.7 ------------ --------- ----------- 1Q'09 50 4,810.9
------------ --------- ----------- 2Q'09 27 1,965.5 ------------
--------- ----------- 3Q'09 17 1,557.8 ------------ ---------
----------- Source: Thomson Reuters & National Venture Capital
Association "Anecdotally we are hearing that fundraising activity
is accelerating as more firms that were waiting for economic
recovery are beginning to formally seek commitments," said Mark
Heesen, president of the NVCA. "The reality, however, is that many
limited partners are still determining their long term strategies
in wake of the past year's financial crisis and that slows the
process down considerably. We expect commitment levels to remain
modest for the remainder of 2009 with gradual increases beginning
in 2010." There were four new funds and 13 follow-on funds raised
in the third quarter of 2009, a ratio of about 3-to-1 of follow-on
to new funds. The largest new fund reporting commitments during the
third quarter was Andreessen Horowitz Fund I, L.P, which raised
$58.5 million in its inaugural fund. A "new" fund is defined as the
first fund at a newly established firm, although the general
partner of that firm may have previous experience investing in
venture capital. VC Funds: New vs. Follow-On No. of No. of Follow-
New on Total ------ ------- ----- 2004 64 154 218 ----- ------
------- ----- 2005 68 174 242 ----- ------ ------- ----- 2006 57
185 242 ----- ------ ------- ----- 2007 62 189 251 ----- ------
------- ----- 2008 51 173 224 ----- ------ ------- ----- 2009 15 72
87 ----- ------ ------- ----- 3Q'07 15 62 77 ----- ------ -------
----- 4Q'07 27 59 86 ----- ------ ------- ----- 1Q'08 12 62 74
----- ------ ------- ----- 2Q'08 23 59 82 ----- ------ -------
----- 3Q'08 14 49 63 ----- ------ ------- ----- 4Q'08 12 37 49
----- ------ ------- ----- 1Q'09 3 47 50 ----- ------ ------- -----
2Q'09 8 19 27 ----- ------ ------- ----- 3Q'09 4 13 17 ----- ------
------- ----- Source: Thomson Reuters & National Venture
Capital Association The largest fund raised in the third quarter
was follow-on fund Khosla Ventures III, which raised $750 million
for an early stage fund, followed by Draper Fisher Jurvetson X,
L.P. which saw $196 million in fund commitments during the third
quarter of 2009. About Thomson Reuters Thomson Reuters is the
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(NASDAQ:TRIN). For more information, go to
http://www.thomsonreuters.com/. mailto:' About National Venture
Capital Association The National Venture Capital Association (NVCA)
represents more than 400 venture capital firms in the United
States. NVCA's mission is to foster greater understanding of the
importance of venture capital to the U.S. economy and support
entrepreneurial activity and innovation. According to a 2009 Global
Insight study, venture-backed companies accounted for 12.1 million
jobs and $2.9 trillion in revenue in the United States in 2008. The
NVCA represents the public policy interests of the venture capital
community, strives to maintain high professional standards,
provides reliable industry data, sponsors professional development,
and facilitates interaction among its members. For more information
about the NVCA, please visit http://www.nvca.org/. DATASOURCE:
Thomson Reuters; National Venture Capital Association CONTACT:
Emily Mendell, NVCA, +1-610-565-3904, , or Matthew Toole, Thomson
Reuters, +1-646-223-7212, , or Janice Addams, Thomson Reuters,
Public Relations, +1-646-223-6940, Web Site:
http://www.thomsonreuters.com/
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