Startup City Magazine

US VC Fundraising Recently Sees Decline

The National Venture Capital Association (NVCA) has recently released the data revealing the recent growth of 130 percent in Venture Capital Fundraising in the third quarter of this year. This is double the growth seen at the same time last year.Venture Capital Fundraising has grown from a mere $2.16 bilion(2011) to a $4.97, this year.

However the fundraising environment is still not a pleasant one with the levels being down to nearly 17percent quarter on quarter. The third quarter of the year shows the capital raised and dispersed across other venture capital firms. While the total fundraising from the top five venture capital funds in the second quarter accounted for an 80 percent, this time it is a mere 55 percent, which is a sure decline.

According to NCVA President Mark Heesen, “while the dollars raised this quarter fell from Q2, we were encouraged by the increase in the number of firms who were successful in raising funds. For the last several years we have watched carefully the consolidation of dollars into the hands of fewer firms. We are hopeful that this uptick is not an anomaly, but demonstrates greater confidence by our limited partners in the asset class as a whole,”-as reported by

A small yet significant increase in the number of new funds is also found in this quarter as against the number of follow on funds. The leading follow on funds include Sequoia Capital US Growth Fund V LP, GGV Capital IV LP, and New Enterprise Associates 14 LP.

Overall we see an uptrend in Venture Capital Fundraising for the first nine months.A total of 16.2 billion can be found between January and September of this year, which is a total of 31 percent increase while compared to the first nine months of the last year.

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