Monday, July 13, 2009

Domain Leads VC Funds, As Overall VC Fundraising Drops To $1.7B

A report on venture capital fundraising released this morning reveals that Domain Associates, which has its west coast offices located in San Diego, was the biggest venture capital fundraise in Q2, with a $371.1M early stage fund, Domain Partners VIII. However, overall venture capital fundraising in the industry dropped to only $1.7 billion in the second quarter--a 13 year low--as only 25 funds were able to find capital through their fundraising efforts. According to the report, from Thomson Reuters and the National Venture Capital Association, the contraction in venture capital fundraising represents the lowest in terms of number of funds raising capital since Q3 of 1996, when only 21 funds raised money; and the lowest level in terms of dollars committed since Q1 of 2003, when only $938.1M was raised. The amount was down significantly from both last quarter -- when 49 funds raised $4.6B, and Q2 of 2008, when $9.28B was raised by 82 funds. NVCA president Mark Heesen said in a statement that the drop in fundraising was likely due to venture firms, who are "waiting until 2010 and beyond to go out to their limited partners."