North America-based Venture Capital Fundraising

by Adam Counihan

  • 06 Sep 2010
  • PE

Preqin data shows that from 2008 to present USD 61.9 billion in capital has been raised by venture capital fund managers based in North America. Of all North American-based private equity venture funds to close since 2008, venture funds with no specific stage focus contributed the most in terms of aggregate capital raised, collecting USD 31 billion in investor commitments. Early stage venture capital funds, like most private equity fundraising during the past two years, have suffered during the financial crisis, with the total amount of capital collected by early stage funds closed in 2009 59% below the USD 8.4 billion total raised in 2008. In the year to date, 12 early stage venture capital funds have closed with an aggregated amount USD 3.7 billion raised. For North America-located venture firms as a whole over the past two years, fundraising has declined from a total of USD 31.5 billion in 2008, to USD 18.9 billion in 2009. Currently, with 35 funds closed so far in 2010 private equity venture funds located in North America have raised an aggregate USD 11.5 billion.

Looking at vehicles currently in the market for North America-based fund managers there are 181 funds on the road seeking USD 30.8 billion in capital. The largest fund currently seeking capital in North America is the Invention Investment Fund II. Intellectual Ventures’ vehicle is currently seeking USD 2.5 billion to invest primarily in venture capital opportunities in US-based technology companies.

Sequoia Capital 2010, a venture private equity fund from Sequoia Capital seeking USD 1 billion in capital commitments, and the KKR China Growth Fund from Kohlberg Kravis Roberts, a USD 800 million growth capital fund are the next two largest funds being raised by North America-based venture private equity firms. Sequoia Capital 2010 seeks to make early-stage investments in both China and the US. The KKR China Growth Fund will run alongside the KKR Asia Fund and will make smaller, minority investments in Chinese firms with a targeted investment size per portfolio company of USD 30 - 75 million.

See Funds in Market for more information

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