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Early Stage Venture Capital Fundraising – July 2012

by Nicholas Jelfs

  • 23 Jul 2012
  • PE

One hundred and thirty-three early stage venture capital funds are currently raising capital with a collective target of $10.7bn, according to Preqin’s Funds in Market database. Fifty-eight of these funds have already completed at least one interim close, and aggregate commitments currently stand at just under $1.9bn.

In terms of geographical fund focus, 59% of the early stage investment vehicles currently in market predominantly target opportunities in North America, 21% primarily seek investment opportunities in Europe, and the remaining 20% invest mainly across Asia and Rest of World. The largest fund currently in market is Lightspeed Venture Partners IX, which makes early stage investments across the globe with a particular focus on China, India and Israel. The fund is seeking $675mn and predominantly targets technology-orientated firms with a focus on the internet, media, communications, cleantech, wireless and semiconductor sectors.

Preqin’s extensive fundraising data shows that between January and July 2012, 40 early stage venture capital funds have reached final close, raising $7.4bn. This demonstrates a continued upward trend for the fund type, following 69 funds holding a final close during 2011 having raised $8.4bn, and 71 funds closing during 2010 on an aggregate total of $6.0bn. The largest fund to close so far in 2012 is Andreessen Horowitz Fund III, which collected $1.5bn in capital commitments, beating its target of $900mn. The fund, which closed at the end of January, targets technology-focused firms that operate across North America.

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