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Venture Capital Fundraising

by Kamarl Simpson

  • 21 Mar 2011
  • PE

There are 119 early stage venture capital vehicles fundraising at present targeting an aggregate USD 13.2 billion. 39% of these funds have already held at least one interim close, with aggregate commitments currently standing at USD 1.1 billion.

Over half of the funds on the road (57%) target the North American market, 23% focus mainly on investments in Europe, and the remaining 20% are seeking investment opportunities in Asia and Rest of World.

The average size of early stage venture capital funds on the road is USD 121 million. The biggest early stage fund currently in market is Invention Investment Fund II, an early stage seed vehicle seeking USD 2.5 billion in capital commitments. It is followed by Summit Partners Venture Capital Fund III which is targeting USD 500 million to invest in a range of sectors in the US.

Since 2007, USD 37.4 billion in capital has been raised by early stage venture capital funds. Of the 315 funds that reached final close since 2007, 174 primarily focus on investing in North America. These 174 funds accounted for 64% of the aggregate capital raised worldwide. Funds focusing on early stage venture investment in the Asia and Rest of World region accounted for 20% of aggregate capital raised globally, while the 71 European-focused funds raised in this time accounted for 16%.

Data from Preqin’s Funds in Market product shows that so far this year nine early stage venture capital funds have reached a final close, raising an aggregate USD 3.6 billion. The largest fund to reach a final close thus far was Yunfeng Fund managed by Yunfeng Capital, which closed in January on USD 1.5 billion. The fund focuses on early stage investment across a diversified range of sectors including technology, telecoms, healthcare, retail, media, internet, agriculture, clean technology, and renewable energy in China.

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