VC fundraising improves in Q3 but down for year
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
- Email | Twitter | Google+
The amount raised in the first three quarters is $11.6 billion, 28 percent lower than last year.
More than half of the money
raised in the last three months was for a handful of large funds, according to a
National Venture Capital Association and Thomson
Reuters report on Monday.
The biggest new funds were
Greylock's $1 billion fund, the only one this year to get to 10 figures. Three
of the others were funds raised by Sequoia Capital: the $552.9 million U.S. Venture Fund
XIV; the $391.4 million Sequoia Capital China fund and the $227 million Sequoia
Capital Israel V fund.
There were 56 funds that closed fundraising in the quarter, the highest
number for 2013, but that number is about 7 percent lower than last year.VCs have been talking about raising smaller funds as startups require less money than in the past as early stages.
But venture-backed companies are also taking longer to get to their exits than they have in the past, with a number in the Bay Area valued at $1 billion or more.
"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," John Taylor, head of research
for the VC association, said in a prepared statement. "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."
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Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
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