Monday, April 14, 2008

Venture Capital Fundraising Slows, But Fund Sizes Increase

Thomson Financial and the National Venture Capital Association (NVCA) reported Monday that venture capital fundraising slowed during the quarter, with a 31 percent decrease in the number of funds raising venture capital funds in the first quarter. Fifty seven venture capital firms raised a total of $6.3B in Q1. Thomson and the NVCA said the amount of capital raised by funds remained unchanged. The numbers compare to 83 venture capital firms, and roughly the same amount of capital raised for the same period last year. Mark Heesen, president of the NVCA, commented in a statement that interest in capital-intensive industries such as life sciences and clean technologies will "likely drive fund sizes upwards for the foreseeable future."