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Technology and Healthcare-Focused Venture Capital Funds in Market - December 2012

by Lisa Gan

  • 17 Dec 2012
  • PE

According to Preqin's Private Equity Spotlight – December 2012, so far this year an aggregate $8.2bn in capital commitments has been raised for venture capital funds with a primary focus on the technology industry and $3.2bn was raised for venture capital funds with a main focus on the healthcare sector. These two particular industries have attracted the highest level of investment from venture capital fund managers. In particular, technology has remained at the forefront of innovation and development in a growing digital culture. Technology and healthcare sector-specific funds accounted for 43% of aggregate venture capital raised between January and December 2012. Out of the $52.1bn currently being sought by venture capital vehicles in market, $31.6bn is accounted for by funds focused on a specific sector. Sector-specific funds account for a greater proportion of the venture capital fundraising market than diversified funds.

Of the venture capital funds in market, there are 101 and 60 venture capital funds that primarily target investment in the technology and healthcare sectors respectively. Technology-focused funds are seeking aggregate commitments of almost $14.0bn and healthcare-focused funds are aiming to raise $9.7bn.

Primarily investing in the technology industry, the largest venture capital fund currently in market is Technology Crossover Ventures VIII, targeting $2.5bn in capital commitments. The fund targets late stage investments in areas of technology such as financial services, internet, infrastructure, communications and software across North America. The second largest technology-focused fund currently raising capital is DST Global III, which has a target of $1bn. This fund makes late stage investments globally within the technology and internet industry.

The largest venture capital fund in market primarily investing in the healthcare industry is Drug Royalty III, a late stage fund with a target of $1bn, focusing on purchasing royalties from pharmaceutical and biotechnology companies, research institutions, and universities. This is followed by Mandarin Capital Partners II, a venture capital fund with a target of €500mn, investing within the healthcare, pharmaceutical, and fine chemicals sectors. This fund will predominantly invest in China, Italy, Israel, Germany and the US.

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