VC Fundraising Engine Stalled, Q2 Venture Fund Closings Hit 13-year Low
Ryan McBride7/13/09Leave a Comment
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63.1 percent from the same quarter last year, or from $4.61 billion to 1.7 billion, according to the study.
—The study says there were about half as many new funds closed in the second quarter of this year compared to last year’s second quarter, dropping from 49 funds to 25 funds. The only bright spot is that eight new funds closed in the second quarter of 2009, compared with three such funds wrapped up in the same quarter last year. The study measures both new funds and follow-on funds.
—The full study can be downloaded from the NVCA’s website.
—Here at Xconomy, we’re hearing that future funds will be smaller and more focused on particular types of investments than the behemoth funds of $500 million or more closed in years past. For example, Founder Collective in Somerville, MA, closed a $30 million-plus new fund revealed in June to invest in early-stage startups. Also, Luke recently wrote about Excel Venture Management, a Boston-based firm that is focusing investments from its new $125 million fund in life sciences ideas applied in numerous industries such as energy, IT, and textiles.
