PRINT THIS PAGE US venture capital fundraising plunges 62 per cent in second quarter from Q2 200601/08/2007. Source: AltAssets. 
US venture capital firms raised $3.23bn in the second quarter of 2007, a 62 per cent drop from the same period last year and the biggest decline since 2002, according to Dow Jones VentureOne. The quarter saw 15 venture capital funds raised, compared to 25 a year ago, and was the lowest quarterly fund total since the first quarter of 2003. At the halfway mark of 2007, venture firms raised a total of $6.36bn, down 50 per cent from amounts raised in the first half of last year.
'Comparing 2007 to 2006 is almost unfair, as by this point last year we had already seen three "mega" funds raise more than $4.3bn in capital,' said Jessica Canning, director of global research for Dow Jones VentureOne. 'Remove those funds from the equation and what we are seeing is clear: venture firms may be raising fewer funds than in years past but they are raising decidedly more capital, which is allowing them to extend the length of time between fund raisings.'
In the second quarter of 2007, both Institutional Venture Partners and Venrock raised $600m funds - IVP XII and Venrock Associates V, respectively - and four other firms closed funds of more than $250m.
Overall, the median size of funds closed to date in 2007 is $190m, which is on par with the median of $194m for all of 2006, which was the second-highest annual median on record behind the $201m median fund size of 2005.
Copyright © 2007 AltAssets
|
