VENTURE CAPITAL FUNDRAISING ACTIVITY REMAINS LACKLUSTER IN Q3 2010
(Thomson Reuters ONE) -
Fewer Firms Raising Smaller Funds Remains the Trend
New York, October 11, 2010 - Forty-five US venture capital funds raised nearly
$3 billion in the third quarter of 2010, according to Thomson Reuters and the
National Venture Capital Association (NVCA). This level marks a 40% increase,
by dollar commitments, compared to the second quarter of 2010, which saw 51
funds raise $2.1 billion during the period. Most of this increase was
attributable to a single $750 million fund closing in the quarter.
Fundraising by Venture Funds
+--------------+----------+----------+
| | | Venture |
| | Number | Capital |
| Year/Quarter | of Funds | ($M) |
+--------------+----------+----------+
| 2005 | 245 | 29,786.5 |
+--------------+----------+----------+
| 2006 | 243 | 32,125.7 |
+--------------+----------+----------+
| 2007 | 252 | 35,426.7 |
+--------------+----------+----------+
| 2008 | 229 | 28,500.0 |
+--------------+----------+----------+
| 2009 | 151 | 16,455.2 |
+--------------+----------+----------+
| 2010 | 124 | 9,103.2 |
+--------------+----------+----------+
| 3Q'08 | 62 | 8,449.9 |
+--------------+----------+----------+
| 4Q'08 | 55 | 3,620.4 |
+--------------+----------+----------+
| 1Q'09 | 59 | 5,373.9 |
+--------------+----------+----------+
| 2Q'09 | 40 | 4,718.0 |
+--------------+----------+----------+
| 3Q'09 | 32 | 2,310.3 |
+--------------+----------+----------+
| 4Q'09 | 46 | 4,053.1 |
+--------------+----------+----------+
| 1Q'10 | 43 | 3,968.8 |
+--------------+----------+----------+
| 2Q'10 | 51 | 2,142.8 |
+--------------+----------+----------+
| 3Q'10 | 45 | 2,991.6 |
+--------------+----------+----------+
Source: Thomson Reuters and National Venture Capital Association
"With funds sizes getting smaller and fewer firms raising money, we are
experiencing a period of time in which venture capital investment is
consistently outpacing fundraising, creating an industry that will be
considerably smaller in the next decade" said Mark Heesen, president of the
NVCA. "While the inclination is to assume that a contracting industry is
problematic, most venture capitalists and their limited partners believe that
this environment will drive future returns upward without harming innovation and
job creation."
There were 31 follow-on funds and 14 new funds raised in the third quarter of
2010, a ratio of 2.2-to-1 of follow-on to new funds. The largest new fund
reporting commitments during the third quarter of 2010 was New York-based Raine
Partners I, L.P., which raised $303.4 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 |
+-------+--------+---------+-------+
| 2005 | 54 | 191 | 245 |
+-------+--------+---------+-------+
| 2006 | 67 | 176 | 243 |
+-------+--------+---------+-------+
| 2007 | 77 | 175 | 252 |
+-------+--------+---------+-------+
| 2008 | 63 | 166 | 229 |
+-------+--------+---------+-------+
| 2009 | 42 | 109 | 151 |
+-------+--------+---------+-------+
| 2010 | 35 | 89 | 124 |
+-------+--------+---------+-------+
| 3Q'08 | 16 | 46 | 62 |
+-------+--------+---------+-------+
| 4Q'08 | 17 | 38 | 55 |
+-------+--------+---------+-------+
| 1Q'09 | 10 | 49 | 59 |
+-------+--------+---------+-------+
| 2Q'09 | 14 | 26 | 40 |
+-------+--------+---------+-------+
| 3Q'09 | 12 | 20 | 32 |
+-------+--------+---------+-------+
| 4Q'09 | 14 | 32 | 46 |
+-------+--------+---------+-------+
| 1Q'10 | 13 | 30 | 43 |
+-------+--------+---------+-------+
| 2Q'10 | 13 | 38 | 51 |
+-------+--------+---------+-------+
| 3Q'10 | 14 | 31 | 45 |
+-------+--------+---------+-------+
Source: Thomson Reuters and National Venture Capital Association
The largest funds raised during the third quarter of 2010 was Menlo Park,
California-based Institutional Venture Partners XIII, L.P. which raised $750
million followed Boston, Massachusetts-based Third Rock Ventures II, L.P., which
raised $426 million.
Methodology
The Thomson Reuters/National Venture Capital Association sample includes U.S.-
based venture capital funds. Classifications are based on the
headquarter location of the fund, not the location of venture capital
firm. The sample excludes fund of funds.
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, healthcare and science 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 55,000 people and operates in over 100 countries. For more information,
go to www.thomsonreuters.com.
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 2008 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 www.nvca.org.
CONTACTS
Emily Mendell
NVCA
1.610.565.3904
emendell(at)nvca.org
Jeanette Volpi
Thomson Reuters
1.646.223.5517
jeanette.volpi(at)thomsonreuters.com
[HUG#1450368]
Press Release (PDF):
http://hugin.info/142273/R/1450368/392003.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.10.2010 - 14:00 Uhr
Sprache: Deutsch
News-ID 44985
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 326 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"VENTURE CAPITAL FUNDRAISING ACTIVITY REMAINS LACKLUSTER IN Q3 2010"
steht unter der journalistisch-redaktionellen Verantwortung von
Thomson Reuters Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
