Venture Funding Down In Q2
The amount of money raised by U.S. venture capital firms declined 33 percent in the second quarter of 2013, according to Thomson Reuters and the National Venture Capital Association, signaling a consolidation of the industry and contraction of fund size, NVCA President Mark Heesen said.
U.S. firms raised $2.9 billion in the second quarter, down 33 percent in the first quarter of 2013 and a 54-percent decline from the same period in 2012. It marks the lowest level of venture capital fundraising since the third quarter of 2011.
"Many long-standing, pedigree venture firms are heeding the guidance from limited partners and raising smaller, more agile funds. Consequently, dollar values of capital under management are declining from historical levels," Heesen said.
There were 44 funds raised in the second quarter, holding steady from the first quarter but down from 46 in the fourth quarter and 59 in the third quarter of 2012.
A recent uptick in the venture-backed IPO market may draw more dollars into the asset class in the coming year, if it proves sustainable, Heesen said.
WBJ Web Partners
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