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 world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people in 93 countries. Thomson Reuters shares are listed on the New York Stock Exchange (NYSE:TRI); Toronto Stock Exchange (TSX: TRI); London Stock Exchange (LSE:TRIL); and Nasdaq (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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