Venture firms raised $8.87 bln in Q1


The venture industry saw a big boost in fundraising in the first quarter as the reinvigorated IPO market and an increase in distributions to LPs lifted investor spirits.

The quarter’s fundraising total of $8.87 billion by 58 U.S.-based venture firms was the largest since the end of 2007. Commitments rose 102 percent from the first quarter a year ago and 81 percent from the fourth quarter, according to the National Venture Capital Association and Thomson Reuters (publisher of peHUB).

The largest funds gathered were TCV VIII, from Technology Crossover Ventures, which raised $1.38 billion, and Founders Fund V, which raised $1.01 billion. The largest first-time fund was the $243 million WiL Fund I from Palo Alto, Calif.

Fundraising remained concentrated in big, established firms. The five largest funds of the quarter accounted for 60% of the capital and 92% of the commitments went to follow-on funds, according to the report.

Still, 25 first-time funds were raised, an increase of 47 percent from the fourth quarter and the largest total since the fourth quarter of 2000.

Photo courtesy of Shutterstock.

Fundraising? Then you don’t want to miss EMERGING MANAGER CONNECT in NYC on Jan. 24. This event is packed with 100+ LPs managing more than $45 billion devoted to emerging managers combined. Details are here:

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