Stats on Number of Venture Firms Raising Funds
A company called Preqin has some stats on the number of early stage venture funds out raising capital, available here. Basically, they are saying that 133 funds are out raising just over $10 billion, with about $2 billion of that already closed by 58 of those funds.
It looks like the asset class is doing ok, in that there is a positive trend in the amount of capital being raised by VCs. From the company’s site, “Preqin’s extensive fundraising data shows that between January and July 2012, 40 early stage venture capital funds have reached final close, raising $7.4bn. This demonstrates a continued upward trend for the fund type, following 69 funds holding a final close during 2011 having raised $8.4bn, and 71 funds closing during 2010 on an aggregate total of $6.0bn.”
I had read on peHub that fewer funds were getting funded recently (although a couple of big funds were keeping the total dollars raised at a decent level.) But I guess I need a subscription to give you a real link to that piece – lesson learned, I’ll have to make sure to aggressively blog about interesting peHUB stuff as it is made available! Here is all that I wrote about it before:
“US venture funds raise $5.9 billion in Q2 2012 – 12% more than Q1. 38 funds raised money. Two of those 38 funds were HALF of the total, so that’s some big funds plus a lot of little ones. But it’s also 22% fewer funds than Q1… so we are continuing to see the contraction of the US venture capital industry.”
So is the industry healthy or not?
I’d say probably not, with the number of new funds shrinking and the amount of $ per new fund really small, with a huge skew in dollars raised to big follow on funds by existing venture capital groups.