Fewer venture capital funds raised money in 2012 compared to a year ago. But those firms that did on average brought in higher amounts, according to new data from Thomson Reuters and the National Venture Capital Association.
For the full year 2012, U.S. venture capital firms raised $20.6 billion from 182 funds, a 10 percent increase by dollar commitments compared to full year 2011, and a three percent decline by number of funds. There were 127 follow-on funds and 55 new funds raised in 2012.
Overall, the venture industry displayed an increasingly pronounced bifurcation into large and small funds, with bigger players capturing an ever-larger share of available capital.
“The venture capital fundraising environment has settled into a “new normal‟ which is characterized by a barbell structure of larger funds which are stage and industry agnostic on one end, and smaller, early stage, industry or region specific funds on the other,” said Mark Heesen, president of NVCA, noting that new funds continue to enter the asset class almost exclusively at the smaller end of the spectrum.
As for quarterly fund-raising trends, the report showed that capital commitments slowed sequentially in the fourth quarter. Overall, 42 U.S. venture capital funds raised $3.3 billion in Q4, a 35% decrease by dollar commitments and a 25% decrease by number of funds compared to Q3, in which 56 funds raised $5.1 billion. The top five venture capital funds accounted for 55% of total fundraising in the fourth quarter, on par with the third quarter.
The full report is here.
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