Although fewer venture capital funds raised money in the first quarter than in any other quarter in the last five-plus years, the actual amount of money rose slightly from the previous quarter, according to data released Monday by Thomson Reuters and the National Venture Capital Association, or NVCA.
Just 40 VC funds raised $4.3 billion in the first quarter of 2009, representing 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 $3.5 billion was raised.
"The first quarter fundraising data suggests two distinct dynamics currently taking place during the economic downturn," says 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."
The largest fund raised in the first quarter was August Capital Management's $650 million balanced-stage August Capital V LP fund, followed by Bain Capital Ventures' $475 million balanced-stage Bain Capital Venture Fund 2009 LP fund. - Mary Kathleen Flynn
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