The National Venture Capital Association released its quarterly report on Monday. The report showed that USD41.1 billion in investments were raised by 54 venture capital funds in the past year. This was a 28% increase in dollar amounts and a 14% increase in number of funds who had participated in fundraisings. However, the numbers were actually lower than numbers around the same time last year. The third quarter of 2012 recorded 60 funds had raised USD5.2 billion in investment capital.
NVCA head of research John Taylor said in a statement, "The slightly larger number of firms raising money in Q3 is an indication that there's some improvement in distributions and prospects. The gradually improving IPO market, along with better quality exits on the M&A side, are signaling to limited partners that venture funds can still yield attractive returns. Smaller fund sizes are not surprising as venture capitalists are looking to invest in less capital intensive sectors and are focused on deploying capital more efficiently."
40 of the 56 funds were follow-on funds. The rest were new funds. Five of the venture capital funds contributed 58% in investment dollars that were raised. Greylock ranked number one as it was the first venture capital fund in the US to have raised more than USD1 billion this year. Sequioa and Drive Capital Fund also raised high investment dollars at USD5529.9 million and USD181 million respectively.
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