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IT-focused Venture Capital Funds in Market

by Jessica Duong

  • 06 Feb 2012
  • PE

Presently, there are 209 venture capital funds in market that target investments within the information technology sector, according to Preqin’s comprehensive Funds in Market database. These funds are focused on making IT investments, either exclusively or as part of a more diversified industry focus and are collectively targeting over $26 billion in capital commitments, with an average target size of $124 million.

A breakdown by geographic focus highlights that the North America region is the most popular focus area for these funds. Preqin’s data reveals that 43% of all venture capital funds investing in IT that are currently raising capital are primarily targeting investments in North America, and that these funds are hoping to raise an aggregate $11.9 billion in commitments. Thirty-six percent are focused on Asia and Rest of the World regions, targeting a total $9.8 billion, and 21% on Europe, collectively targeting $4.3 billion.

The largest IT-focused venture capital fund currently in market is the KPCB Digital Growth Fund, which is targeting $1 billion. The vehicle, managed by Kleiner, Perkins, Caufield & Byers, seeks investment opportunities in the IT, digital media and internet sectors, and targets companies based in the US.

The last 12 months saw an aggregate $22.8 billion raised by 96 venture capital funds reaching a final close that make investments across the IT universe. The largest of these were the Andreessen Horowitz Fund III and InSight Venture Partners VII, which both closed on $1.5 billion. The former targets technology-orientated opportunities across North America, and the latter seeks US-based technology, software, internet and media firms.

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