(http://thomsonreuters.com)
Thirty-eight U.S. venture capital funds raised $5.9 billion in the
second quarter of 2012, according to Thomson Reuters and the National
Venture Capital Association (NVCA). This level marks a 12 percent
increase by dollar commitments and a 22 percent decline by number of
funds compared to the first quarter of 2012, which saw 49 funds raise
$5.3 billion during the period. The top five funds accounted for
nearly 80 percent of total fundraising this quarter as the number of
funds raising money during the quarter fell to its lowest levels since
the third quarter of 2009, when 38 venture capital funds also saw new
capital commitments. Venture Capital fundraising for the first half of
2012 totaled $11.2 billion, a 10 percent increase by dollar
commitments compared to the first half of 2011 ($10.2 billion) and an
8 percent decline by number of funds.
Fundraising by Venture Capital Funds
------------------------------------------------------------------
Year/Quarter Number of Funds Venture Capital ($M)
------------------------------------------------------------------
2008 212 25,179.1
------------------------------------------------------------------
2009 163 16,335.8
------------------------------------------------------------------
2010 173 13,559.2
------------------------------------------------------------------
2011 182 18,575.1
------------------------------------------------------------------
2012 82 11,173.5
------------------------------------------------------------------
2Q'10 49 2,100.8
------------------------------------------------------------------
3Q'10 56 3,688.4
------------------------------------------------------------------
4Q'10 50 3,735.2
------------------------------------------------------------------
1Q'11 47 7,556.7
------------------------------------------------------------------
2Q'11 45 2,609.4
------------------------------------------------------------------
3Q'11 65 2,140.5
------------------------------------------------------------------
4Q'11 53 6,268.5
------------------------------------------------------------------
1Q'12 49 5,264.4
------------------------------------------------------------------
2Q'12 38 5,909.1
------------------------------------------------------------------
Source: Thomson Reuters and National Venture Capital Association
"As the number of venture capital firms continues to contract, we are
beginning to see a clear bar bell forming with several large funds
weighing in heavily on one side of the spectrum and a multitude of
smaller funds on the other side," said Mark Heesen, president of the
NVCA. "This polarity translates into a heavier concentration of
dollars in the hands of fewer large firms, narrowing the overall field
of venture funds from which to choose for entrepreneurs and limited
partners alike. As the venture industry bifurcates further, successful
LPs and portfolio CEOs are going to have to search for quality firms
on both sides of the barbell."
There were 28 follow-on funds and 10 new funds raised in the second
quarter of 2012, a ratio of 2.8-to-1 of follow-on to new funds. The
largest new fund reporting commitments during the second quarter of
2012 was from San Francisco, California-based Mithril, L.P. which
raised $402.0 million for the firm's inaugural fund. A "new" fund is
defined as the first fund at a newly established firm, although the
general partners of that firm may have previous experience investing
in venture capital. The 10 new funds raised during the second quarter
of 2012 mark the slowest three-month period for capital raising from
new funds since the first quarter of 2009, when 10 new funds were
raised.
VC Funds: New vs. Follow-On
---------------------------------------------------------------------
No. of Follow-
No. of New on Total
---------------------------------------------------------------------
2008 51 161 212
---------------------------------------------------------------------
2009 41 122 163
---------------------------------------------------------------------
2010 57 116 173
---------------------------------------------------------------------
2011 57 125 182
---------------------------------------------------------------------
2012 20 62 82
---------------------------------------------------------------------
2Q'10 19 30 49
---------------------------------------------------------------------
3Q'10 20 36 56
---------------------------------------------------------------------
4Q'10 18 32 50
---------------------------------------------------------------------
1Q'11 14 33 47
---------------------------------------------------------------------
2Q'11 15 30 45
---------------------------------------------------------------------
3Q'11 22 43 65
---------------------------------------------------------------------
4Q'11 14 39 53
---------------------------------------------------------------------
1Q'12 12 37 49
---------------------------------------------------------------------
2Q'12 10 28 38
---------------------------------------------------------------------
Source: Thomson Reuters and National Venture Capital Association
Second quarter 2012 venture capital fundraising was lead by Menlo
Park, California-based New Enterprise Associated 14, L.P. which raised
nearly $2.1 billion, and Institutional Venture Partners XIV, L.P.
which raised $1.0 billion during the quarter.
MethodologyThe Thomson Reuters/National Venture Capital Association
sample includes U.S.-based venture capital funds. Classifications are
based on the headquarter location of the fund, not the location of
venture capital firm. The sample excludes fund of funds.
Effective November 1, 2010, Thomson Reuters venture capital fund data
has been updated in order to provide more consistent and relevant
categories for searching and reporting. As a result of these changes,
there may be shifts in historical fundraising statistics as a result
of movements of funds between primary market & nation samples and/or
between fund stage categories.
About Thomson ReutersThomson Reuters is the world's leading source of
intelligent information for businesses and professionals. We combine
industry expertise with innovative technology to deliver critical
information to leading decision makers in the financial and risk,
legal, tax and accounting, intellectual property and science and media
markets, powered by the world's most trusted news organization. With
headquarters in New York and major operations in London and Eagan,
Minnesota, Thomson Reuters employs approximately 60,000 people and
operates in over 100 countries. Thomson Reuters shares are listed on
the Toronto and New York Stock Exchanges. For more information, go to
http://thomsonreuters.com(http://ctt.marketwire.com/?release=907112&id=1784344&type=1&url=http%3a%2f%2fthomsonreuters.com%2f).
About National Venture Capital AssociationVenture capitalists are
committed to funding America's most innovative entrepreneurs, working
closely with them to transform breakthrough ideas into emerging growth
companies that drive U.S. job creation and economic growth. According
to a 2011 Global Insight study, venture-backed companies accounted for
12 million jobs and $3.1 trillion in revenue in the United States in
2010. As the voice of the U.S. venture capital community, the National
Venture Capital Association (NVCA) empowers its members and the
entrepreneurs they fund by advocating for policies that encourage
innovation and reward long-term investment. As the venture community's
preeminent trade association, NVCA serves as the definitive resource
for venture capital data and unites its more than 400 members through
a full range of professional services. For more information about the
NVCA, please visit
www.nvca.org(http://ctt.marketwire.com/?release=907112&id=1784347&type=1&url=http%3a%2f%2fwww.nvca.org%2f).
Press Release
PDFhttp://hugin.info/142273/R/1625141/519793.pdf(http://ctt.marketwire.com/?release=907112&id=1784350&type=1&url=http%3a%2f%2fhugin.info%2f142273%2fR%2f1625141%2f519793.pdf)
