Early Stage Venture Capital Fundraising – January 2013

by Kamarl Simpson

  • 29 Jan 2013
  • PE

One hundred and fifty-four early stage venture capital funds are currently raising capital with a collective target of $13.3bn, according to Preqin's Funds in Market database. Both the number of early stage funds in market and aggregate capital sought remains at a similar level to the beginning of 2012, in which 153 early stage vehicles were in market seeking $13.9bn. Of the early stage funds currently in market, 76 have already completed at least one interim close and aggregate capital commitments currently stand at just under $2.5bn. Early stage vehicles with a primary focus on the healthcare and technology industries account for the largest amount of targeted capital, representing $2.4bn and $6.1bn respectively.

In terms of geographical fund focus, 58% of the early stage investment vehicles currently in market predominantly target opportunities in North America, 22% primarily seek investment opportunities in Europe and the remaining 20% invest mainly across Asia and Rest of World. The largest early stage fund currently in market is Dutch Technologies Media Telecommunications & Infra Fund. Managed by N.S.Lachman & Co., the fund is seeking €1bn in capital commitments for investment in large-scale communications projects and companies within the Netherlands and other European start-ups in the technology media and telecommunications industries.

In 2012, 83 early stage venture capital funds reached final close, having raised an aggregate $12.3bn. This demonstrates a continued upward trend for the fund type, following 74 early stage funds holding a final close during 2011 having raised $8.3bn, and 73 funds closing during 2010 with an aggregate total of $7.4bn in capital commitments. The largest fund to close in 2012 was Andreessen Horowitz Fund III, which collected $1.5bn in capital commitments, surpassing its target of $900mn. The fund closed in January 2012 and targets technology-focused firms that operate across North America.

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