According to Thomson Reuters and the National Venture Capital Association (NVCA), U.S. venture capital firms raised $7.4 billion in new commitments from 78 funds during the second quarter of 2014, a 24% increase compared to the number of funds raised during the first quarter of 2014 and a 19% decline by dollar commitments.
The number of funds raised during the second quarter of 2014 increased 42% compared to the second quarter of last year and marks the strongest quarter for venture capital fundraising, by number of funds, since the fourth quarter of 2007 when 83 funds were raised for venture capital investments.
Commitments were received by 58 follow-on funds and 20 new funds during the second quarter with 92% of new capital committed going to follow-on funds. The number of new funds raised during the second quarter marks a slight increase from the number of first-time funds raised during the first quarter of last year and the number of follow-on funds raised during the second quarter of this year registered a 61% increase from the first quarter.
The largest new fund reporting commitments during the second quarter of 2014 was from Boston, Massachusetts-based Lightstone Ventures, L.P. which raised $172.0m for the firm’s inaugural fund.