Preqin’s Fund Manager Profiles online service shows that the US continues to dominate the venture capital industry, having raised 65% of all venture capital raised in the last 10 years and maintaining the largest number of venture capital-focused firms. There are 1,898 fund managers located in the US that focus solely on funds with a venture capital strategy. This group has raised $265bn in aggregate capital commitments over the past 10 years, making up 95% of the total venture capital raised by US-based managers over the period.
As shown in the above chart, the highest proportion (40%) of exclusively venture capital-focused US-based fund managers are located in the West, representing 761 managers. These GPs, the majority of which are based in California, account for approximately $135bn (51%) of total venture capital raised over the past 10 years within the US. Of the top 20 largest venture capital fund managers by capital raised in the last 10 years, 11 were headquartered in the West of the US. Additionally, firms based in the West boast the highest amount of dry powder, with an estimated $45bn of capital yet to be invested.
The Northeast is the second most prominent region for venture capital fund managers, with 614 firms raising 31% of total funds over the past decade. Venture capital-focused fund managers located in the Northeast also account for seven of the 20 largest managers by total capital raised over the past 10 years. The Southeast and Southwest remain the least represented regions, hosting a combined 14% of total US-based venture capital-focused managers. Furthermore, managers headquartered in the South only account for 5% of the total capital raised over the past 10 years by US-based venture capital firms.
Adams Street Partners, located in the Midwest region of the US, is the largest exclusively venture capital-focused fund manager in the US by total capital raised over the past 10 years, having raised approximately $21bn. The firm is located in Chicago and primarily focuses on venture capital, but also makes co-investments, growth, buyout, secondaries and fund of funds investments. The largest venture capital fund manager in the West, by total capital raised in the past 10 years, is San Francisco-based Sequoia Capital, with approximately $10.7bn garnered.
Currently, there are 354 funds on the road being raised by venture capital-focused US-based fund managers, according to Preqin’s Funds in Market database. Of the current funds in market being raised by US-based venture capital firms, 156 are being raised by managers located in the West, targeting a total of $19.5bn. The Northeast remains the second most prominent region with 103 funds looking to collect $13.8bn. Fund managers with a venture capital focus continue to be concentrated in California and New York, with 33% and 14% of total US-based managers headquartered in these states respectively.