Monday, April 13, 2009
VC Fundraising Slows
Startups aren't the only ones seeing a slowdown in fundraising: a report released today finds that venture capitalists themselves are seeing a slowdown in their ability to raise funding. According to a report released this morning by Thomson Reuters and the National Venture capital Association (NVCA), only 40 venture capital funds were able to raise funding this quarter, raising $4.3 billion in capital for Q1. The amount was the smallest number of funds raising capital in a single quarter, since Q3 of 2003. According to the report, only three of those funds were new funds; 37 of the funds raising capital this quarter were follow-on funds. However, the news was not all bad: according to Thomson/NVCA, the amount raised by the funds was an increase from the previous quarter, when only $3.5 billion was raised.