SAN FRANCISCO, April 14 U.S. venture funds
raised $8.9 billion in the first quarter, the most in six years
and almost double the amount raised the year before,
underscoring the growing enthusiasm of investors for start-up
It was the strongest showing since the 2007 fourth quarter,
when venture firms raised $10.4 billion, according to the report
from the National Venture Capital Association, based on Thomson
Venture-capital research firm CB Insights reported last week
that investments by venture-capital firms into start-ups hit
$9.99 billion last quarter, more than any quarter since 2001.
Some 58 venture funds were raised during the first quarter,
10 more than a year earlier, the NVCA said.
A hot market for initial public offerings and acquisitions
is likely bolstering investor appetite for the sector. Earlier
this month, the NVCA said venture capital-backed companies held
36 initial public offerings in the first quarter, more than any
quarter for at least five years.
TCV, a late-stage investor based in Palo Alto, California,
raised the largest fund of the quarter, the $1.38 billion TCV
VIII. Founders Fund raised a $1.01 billion fund, Founders Fund
V. Both firms backed social-networking company Facebook.
Despite the big offerings from a few funds, the NVCA
described the fund-raising environment for its members firms as
difficult. Although venture-capital performance has recently
improved for the 10-year time horizon the industry views as its
sweet spot, for years it lagged the stock market, making it hard
for firms to attract money.
(Reporting by Sarah McBride; Editing by Leslie Adler)