Venture Fundraising

by Ben Formela Osborne

  • 21 Jul 2009
  • PE

Private equity venture capital fundraising is continuing its decline from the peak witnessed at the close of 2007. During Q2 2009, 25 venture funds completed fundraising which aggregated $5.3 billion in capital commitments. This is a 28% decrease on the $7.4 billion that was raised by 35 venture funds that concluded fundraising in the preceding quarter of 2009. Drawing a direct comparison between the statistics derived this quarter with the figures from the corresponding quarter in 2008 reveals the scale of contraction in private equity venture fundraising over the past twelve months. Fundraising for venture funds during Q2 2009 measured a 66% decrease from the amount of capital attracted during the same quarter in 2008, when 77 funds closed with $14.8 billion of capital to invest. This trend highlights the current turmoil in the venture capital market as investors continue to tighten their purse strings.

Of all private equity venture funds to close during Q2 2009, 55% are expansion or late stage focused funds, which together have collected $2.9 billion in capital commitments in the three month period to end of June 2009. Venture funds with no specified stage preference contributed 25% of the total funds raised with $1.3 billion, while early stage funds raised $1 billion, 20% of aggregated venture capital commitments in Q2 2009.

For more information on venture capital fundraising, please see Preqin’s Funds in Market online module.

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