Venture Capital Fundraising Down by 63 Percent So Far This Year

7/8/09Follow @bvbigelow

In news that’s not exactly unexpected, a mid-year survey shows that fundraising among U.S. venture capital firms is near low ebb, with the total raised so far at the lowest point since 2003, when 34 VC funds raised $2.2 billion in the first half of the year.

The survey released today by Dow Jones Private Equity Analyst shows shows 51 venture firms raised $5.1 billion nationwide during the first six months of 2009—down almost two thirds from last year, when 115 VC firms raised $13.6 billion.

The survey found similar results for fundraising by all types of private equity funds, not just venture capital, with 173 PE funds raising $54.9 billion during the first six months of 2009. That was 64 percent less than the $152.7 billion raised by 261 funds during the first half of 2008.

In a statement, Jennifer Rossa, the managing editor of Dow Jones Private Equity Analyst, said, “Right now, most venture firms are more concerned about conserving cash and helping portfolio companies survive than raising a new fund.”

The largest venture capital fund raised so far belongs to New Enterprise Associates of Baltimore, MD, which got $907 million for its eighth venture fund. The firm has said it intends to raise $2.5 billion for the fund, known as New Enterprise Associates XIII.

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Bruce V. Bigelow is the editor of Xconomy San Diego. You can e-mail him at bbigelow@xconomy.com or call (619) 669-8788 Follow @bvbigelow

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