Preqin’s comprehensive Fund Manager Profiles reveals there are 1,338 North America-based venture capital fund managers considering solely venture capital investment opportunities, ranging from early stage seed to expansion/late-stage. Collectively, these firms have raised more than $140bn in the last 10 years and hold over $40bn in estimated dry powder. The most apparent trend is that 94% of the 1,338 private equity firms are made up of US-based managers, while the remaining 6% are accounted for by venture capital firms based in Canada, Bermuda and the Cayman Islands.
Preqin categorises venture capital into three separate stages including early stage seed, early stage start-up and expansion/late stage. Currently, 47 fund managers are considering investing solely in early stage seed capital, 24 are exclusively focusing on early stage start-up investment opportunities, while 42 are considering investing only in companies going through the expansion/late stage in their investment cycle. The remaining 1,225 North America-based GPs have a wider investment focus on general venture capital opportunities.
Statistics show that the North American firms solely targeting expansion/late stage investments have raised the greatest amount of capital in the last 10 years, amounting to over $4bn. This is an unsurprising observation given the nature of these deals whereby a larger amount of capital is required to fund the growth and expansion of a more established company.
California-based Kleiner Perkins Caufield & Byers is the largest venture capital firm to consider the whole range of venture capital stages, having raised a total of $5.7bn, while in terms of dry powder, Tiger Global Management is positioned with the greatest amount of capital available to invest across all stages of venture capital. Kleiner Perkins Caufield & Byers seeks to help entrepreneurs build sustainable technology businesses, with a particular focus on life sciences, digital, and clean-technology industries. Tiger Global Management, a new York-based firm, has a global focus on technology, telecommunications, media, energy, real estate and retails sectors. The firm’s most recent venture all-stage fund, Tiger Global Private Investment Partners VII, raised a significant $1485mn in March 2012.
O’Reilly AlphaTech Ventures is the largest venture capital firm to invest solely in early stage seed opportunities, having raised a total of $196mn over the last decade. The San Francisco-based firm specialises specifically in seed-stage investment within the US and raised a total of $85mn from its most recent fund, AlphaTech Ventures III.
The largest early stage start-up only venture capital firm is Claremont Creek Ventures, having raised $234mn in capital commitments in the last 10 years. The firm currently hold plans to raise a third in their series of early stage start-up funds to invest in IT and life science companies in the US.
The largest exclusively expansion/late stage venture firm in terms of both dry powder and total capital raised over the last decade, with $1.4bn and $2.3bn respectively, is DRI Capital. The Toronto-based firm seeks to purchase the royalty streams of pharmaceutical and biotechnology products from life science companies. The firm just recently closed its third expansion/late stage vehicle on $1,450mn in September 2013.