Venture Capital Firms Raised $4.9 Billion in Q1 2012

Mon Apr 9, 2012 8:00am EDT

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  NEW YORK, NY, Apr 09 (Marketwire) -- 
Forty-two U.S. venture capital funds raised $4.9 billion in the first
quarter of 2012, according to Thomson Reuters and the National Venture
Capital Association (NVCA). This level marks a 35 percent decrease by
dollar commitments and a 9 percent decline by number of funds compared to
the first quarter of 2011, which saw 46 funds raise $7.6 billion during
the period. The top five funds accounted for nearly 75 percent of total
fundraising this quarter as the number of funds raising money during the
quarter fell to its lowest levels since the third quarter of 2009, when
36 venture capital funds saw new capital commitments. 

                   Fundraising by Venture Capital Funds
                                  Number of     Venture
                   Year/Quarter     Funds    Capital ($M)
                   2008                  212     25,340.1
                   2009                  160     16,400.7
                   2010                  170     13,778.9
                   2011                  181     18,767.6
                   2012                   42      4,876.9
                   1Q'10                  47      4,268.2
                   2Q'10                  48      2,099.9
                   3Q'10                  55      3,677.6
                   4Q'10                  49      3,733.2
                   1Q'11                  46      7,556.5
                   2Q'11                  46      2,814.4
                   3Q'11                  65      2,140.5
                   4Q'11                  52      6,256.2
                   1Q'12                  42      4,876.9

Source: Thomson Reuters and National Venture Capital Association

    "While the first quarter fundraising numbers represent a slower start
than last year, venture firms appear to be more optimistic about the
fundraising environment in 2012, especially those who have benefitted
from the improving exit environment of late which has also been
encouraging to our investors," said Mark Heesen, president of the NVCA.
"Many venture firms are either now officially in the market to raise a
fund or will enter in 2012. For these firms, it will be 'do or die' --
and the collective outcome of their fundraising efforts will lay the
groundwork for the amount of venture capital available for investment in
entrepreneurial companies the next decade." 

    There were 31 follow-on funds and 11 new funds raised in the first
quarter of 2012, a ratio of 2.8-to-1 of follow-on to new funds. The
largest new fund reporting commitments during the first quarter of 2012
was from Boulder, Colorado-based Fraser McCombs Ventures, L.P. which
raised $16.9 million for the firm's inaugural fund. A "new" fund is
defined as the first fund at a newly established firm, although the
general partners of that firm may have previous experience investing in
venture capital.

                      VC Funds: New vs. Follow-On
                             No. of    No. of
                              New    Follow-on  Total
                      2008       51         161   212
                      2009       40         120   160
                      2010       55         115   170
                      2011       56         125   181
                      2012       11          30    41
                      1Q'10      14          33    47
                      2Q'10      18          30    48
                      3Q'10      20          35    55
                      4Q'10      17          32    49
                      1Q'11      13          33    46
                      2Q'11      15          31    46
                      3Q'11      22          43    65
                      4Q'11      14          38    52
                      1Q'12      11          31    42

Source: Thomson Reuters and National Venture Capital Association

    First quarter 2012 venture capital fundraising was lead by Menlo Park,
California-based Andreessen Horowitz Fund III, L.P. which raised $1.5
billion, the firm's largest fund to date. Canaan Partners and Bain
Capital Ventures each raised $600 million during the first quarter of

 The Thomson Reuters/National Venture Capital
Association sample includes U.S.-based venture capital funds.
Classifications are based on the headquarter location of the fund, not
the location of venture capital firm. The sample excludes fund of funds.

    Effective November 1, 2010, Thomson Reuters venture capital fund data has
been updated in order to provide more consistent and relevant categories
for searching and reporting. As a result of these changes, there may be
shifts in historical fundraising statistics as a result of movements of
funds between primary market & nation samples and/or between fund stage

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    About National Venture Capital Association
 Venture capitalists are
committed to funding America's most innovative entrepreneurs, working
closely with them to transform breakthrough ideas into emerging growth
companies that drive U.S. job creation and economic growth. According to
a 2011 Global Insight study, venture-backed companies accounted for 12
million jobs and $3.1 trillion in revenue in the United States in 2010.
As the voice of the U.S. venture capital community, the National Venture
Capital Association (NVCA) empowers its members and the entrepreneurs
they fund by advocating for policies that encourage innovation and reward
long-term investment. As the venture community's preeminent trade
association, NVCA serves as the definitive resource for venture capital
data and unites its more than 400 members through a full range of
professional services. For more information about the NVCA, please visit


Emily Mendell

Lauren Herman
Thomson Reuters

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