Current Global Early-Stage Venture Capital Fundraising

by Adam Counihan

  • 18 Oct 2010
  • PE

Preqin’s research reveals that there are 106 early-stage venture capital vehicles fundraising at present targeting an aggregate USD 13.3 billion. 41% of these funds have already had at least one interim close having raised USD 7 billion.
In terms of the number of vehicles currently on the road, over half (55%) target the North American market, 24% focus mainly on investments in Asia and Rest of World, whilst the remaining 21% of the funds are seeking investment opportunities in Europe.

The average size of early-stage venture capital funds on the road is USD 148 million. The biggest early-stage fund currently in market is Invention Investment Fund II, an early-stage seed vehicle seeking USD 2.5 billion. It is followed by Sequoia Capital 2010 which is targeting USD 1 billion to invest in China growth and early-stage investments and US early-stage deals.

Preqin data shows that from 2007 to present USD 33 billion in capital has been raised by early-stage venture capital fund managers. Of the 275 funds that reached final close since 2007, 158 primarily focus on investing in North America. These 158 funds accounted for 68% of the aggregate capital raised worldwide. Funds focusing on early-stage venture investment in the Asia and Rest of World region accounted for 17% of aggregate capital raised globally, while the 59 European-focused funds raised in this time accounted for 15%.

Data from Preqin’s Funds in Market product shows that so far this year 28 early-stage venture capital funds have reached a final close. They garnered an aggregate USD 5.3 billion in capital commitments. The largest fund to reach a final close was New Enterprise Associates XIII managed by New Enterprise Associates, which closed in January on USD 2.48 billion, just short of the funds original target of USD 2.5 billion. The fund focuses on early stage investment in the IT, energy, technology and healthcare sectors in North America.

For more information on private equity fundraising please see Preqin'sFunds in Market product.

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