The Preqin database provides details for over 3,500 firms located across the globe making venture capital investments, of which 1,365 manage specific closed-end venture capital funds. Over 3,700 venture vehicles have raised $558 billion since 1998, with primarily North America-focused funds consistently raising the most capital each year. The largest annual amount raised was by funds closing in 2000; this record figure came as a result of the dot-com boom. Primarily North America-focused funds were responsible for raising 75% of the $84 billion raised by venture firms in 2000 and account for 63% of the total capital raised by the sector since 1998. However, Asia and Rest of World-focused funds have become more prominent within the venture market, and were responsible for 37% of the $62 billion raised in 2008.
49% of the 1,365 venture fund managers are headquartered in North America. Europe hosts 25% of venture firms, and Europe-focused funds have raised 16% of aggregate capital commitments to venture funds raised between 1998 and 2010. 25 Europe-focused funds have closed in 2010 to date, raising an aggregate $7.6 billion in capital commitments. Just under a fifth of venture firms are located in Asia and Rest of World, and this figure is likely to increase as emerging economies continue to develop.
This blog is an extract from this month's Private Equity Spotlight, which is a venture capital special. If you are interested in receiving Preqin’s Private Equity Spotlight for free, please sign up.