Venture Capital Fundraising Drops

Venture capital fundraising activity dropped significantly in Q4, according to a report released Monday by Thomson Reuters and the National Venture Capital Association (NVCA). The report, which tracks the fundraising activity of venture capital firms, found that there was $3.4 billion in forty-three venture capital funds raised in Q4 of 2008, down from $8.4 billion in the prior quarter, and down significantly from the $11.7 billion raised in Q4 of 2007. The NVCA's Mark Heesen speculated in a statement that fundraising activity dropped because of market uncertainty, and because many venture capital firms have raised money in the last two years and are deploying those funds.