VC Firms Raise $5.5B

The National Venture Capital Association and Thomson Venture Economics is reporting that venture firms raised $5.5B in funds in the third quarter. That compares to $3.1B raised last quarter, and $2.6B the quarter previous. The report found that there were 46 funds that raised money in Q3, bringing the YTD total of new funds to 125 raising a total of $11.2B for the year--a healthy increase over the previous two years. The results show an increasing interest in venture capital by institutional investors, and a marked increase in the last year. However, the amount raised is still dwarfed by the 2000, where a record $106B and 635 funds were created. Mark Heesen, president of the NVCA, said in a statement that the results show an extremely strong level of interest in the venture capital asset class, but that it was also critical that the venture capital industry ensures that it does not take more money than can be invested successfully.