BC-Venture Capital Firms Raised $5.9 Billion in Q2 2012,999

(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)

Loading...
See all articles from Associated Press

Friend's Activity