Just 17 venture capital funds raising $1.6bn in the third quarter of 2009 represent the smallest number of funds raising money (in a single quarter) since 1994, figures from Thomson Reuters and the National Venture Capital Association (NVCA) reveal.
Commenting on data, Mark Heesen, president of the NVCA said: “Anecdotally we are hearing that fundraising activity is accelerating as more firms that were waiting for economic recovery are beginning to formally seek commitments.
“The reality, however, is that many limited partners are still determining their long term strategies in wake of the past year’s financial crisis and that slows the process down considerably. We expect commitment levels to remain modest for the remainder of 2009 with gradual increases beginning in 2010.”
According to figures, There were 4 new funds and 13 follow-on funds raised in the third quarter of 2009.
The largest new fund reporting commitments was Andreessen Horowitz Fund I, L.P, which raised $58.5m.