The New Early Stage Fund Fling

Across the globe, 133 early stage venture funds are on the road seeking $10.7 billion in capital. Some, apparently, are meeting with success.

The figures above come from Preqin, which pointed out this week that a new fling with young-company investing may be at hand. From January to July this year, 40 early stage funds closed on $7.4 billion, Preqin reports. This includes the monster $1.5 billion Andreessen Horowitz Fund III, which to be fair is likely to stray from just pure early stage investing.

But it may not include most or all of the $2.6 billion New Enterprise Associates collected for its fourteenth fund, which also has a broader mandate than just early stage companies. And it most certainly doesn’t include the $675 million raised for Lightspeed Venture Partners IX, which announced its close at the end of June. So the figure could be higher.

Even if not, this year’s pace is a step or two faster than last year’s, when for the full year 69 early stage venture funds raised $8.4 billion. Double this year’s first-half results and money coming in is substantially greater.

It also is miles ahead of 2010, when 71 funds closed on $6 billion, Preqin reports.

While the pace of second-half fundraising is anything but certain, money is available around the world for young companies. And more is on the way. Preqin says 58 of the funds presently in the market have completed an interim close on commitments of almost $1.9 billion.

The new group is a diverse lot. Of those seeking capital, 59% are looking to invest in North America, 21% are focused on Europe and 20% target Asia and the rest of the world.

Photo courtesy of Shutterstock.

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