Venture Funds Dry Powder

by Ben Formela Osborne

  • 27 Jan 2010
  • PE

Data from Preqin’s Fund Manager Profiles product reveals that the amount of estimated venture dry powder available to firms has increased each year since December 2004, rising from $102.1bn to $162.8bn in December 2009, an increase of 59%. However, the rate of this increase has slowed significantly since December 2007, when there was an estimated $159.7bn capital available to venture firms.

In terms of estimated venture dry powder by region, North America focused venture funds have the most dry powder, with $83.6bn available in December 2009. However, this has decreased since its peak in December 2007, when North America focused venture funds had an estimated $89.5bn to draw on. In contrast, Asia and Rest of World focused venture funds have seen the estimated capital available to them increase each year since December 2003, it now stands at $48.4bn as of December 2009. Europe focused venture funds currently have the lowest levels of estimated dry powder with $30.8bn. This has changed from previous years, Europe focused venture funds had more estimated dry powder than Asia and Rest of World focused venture funds in December 2004.

Estimates derived from Preqin data shows that US early stage fund manager New Enterprise Associates has the most venture dry powder, with just over $3bn available to the firm. California neighbour Technology Crossover Ventures has the second largest pool of available capital from venture funds, with dry powder estimates of $2.6bn.

For a comprehensive, detailed source of information on private equity fund managers, including information on current and historical dry powder levels across fund types, regions, and across fund sizes, please see our Fund Manager Profiles product.

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