Venture Capital Fundraising Activity Slows Considerably in 1Q2009
National Venture Capital Association (NVCA) and Thomson Reuters
April 2009
Just 40 venture capital funds raised US$4.3 billion in the first quarter of 2009, according to Thomson Reuters and the National Venture Capital Association (NVCA). This level represented the smallest number of venture funds raising money in a single quarter since the third quarter of 2003. Dollars commitments however, reflected a slight increase over the previous quarter when US$3.5 billion was raised.
“The first quarter fundraising data suggests two distinct dynamics currently taking place during the economic downturn,” said Mark Heesen, president of the NVCA. “First, the majority of venture firms are not actively fundraising at this time because they have either recently raised a fund and are investing those dollars, or are waiting until market conditions improve. Second, despite the recession, venture firms with solid track records continue to be able to secure sizable commitments from limited partners as there remains a great deal of promise for future returns from the venture capital asset class.”
