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Venture Capital Dry Powder – November 2013

by Laura Duce

  • 06 Nov 2013
  • PE

Preqin’s Fund Manager Profiles shows that there are currently almost 4,000 private equity firms worldwide that consider venture capital investments, either exclusively, or as part of a wider strategy, with more than 2,100 private equity firms solely focused on venture capital or venture debt investments. Since 2003, 2,887 venture capital and venture debt funds have held a final close, which have collectively raised $380bn. As of November 2013, venture capital funds have $116bn in uncalled capital, which has remained fairly constant over the past five years, with $115bn, $110bn, $115bn, and $111bn available in estimated dry powder respectively in the consecutive years running from 2009 to 2012.

When broken down by region, there is significantly more estimated uncalled capital in North America than other regions, with an estimated $66bn available to North America-focused funds. This has fallen significantly from December 2007, when there was $82bn available, but is similar to more recent years, with $66bn available in December 2010, $66bn in December 2011, and $63bn in uncalled capital in December 2012. Unlike North America-focused funds, Asia and Rest of World-focused funds now have significantly more dry powder than they had in December 2007, with a current estimated dry powder of over $33bn, compared with just $22bn six years ago.

Broken down by fund type, all-stage venture capital funds have the largest amount of estimated dry powder, with approximately $66bn available. This has fallen significantly from the $76bn of uncalled capital in December 2007. However, it has not varied much since December 2010, when there was an estimated dry powder of $64bn. Early stage funds have the second largest amount of uncalled capital, with roughly $32bn, which has only slightly fluctuated over the years since December 2003. Expansion/late stage estimated dry powder peaked in December 2011, with $17bn in uncalled capital, and has fallen slightly to the $16bn available in November 2013.

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