SAN FRANCISCO, July 9 Fundraising by U.S.
venture-capital firms dropped 54 percent in dollar terms to
$2.88 billion in the second quarter, the weakest quarter for
fundraising in almost two years.
Some 44 firms raised the cash, the National Venture Capital
Association and Thomson Reuters said, compared to 51 a year
Returns for venture capital generally have been
underperforming compared to the stock market. For the 10-year
period ended Dec. 31, the latest available, venture capital
returned 6.9 percent, compared to 8.5 percent for the Nasdaq
composite index, according to consultancy Cambridge Associates.
"Many long-standing, pedigree venture firms are heeding the
guidance from limited partners and raising smaller, more agile
funds," said Mark Heesen, president of the NVCA, in a press
release. "Counterbalancing this trend is the recent uptick in
the venture-backed IPO market which, if sustainable, may very
well draw more dollars into the asset class in the coming year."
While more venture-backed companies held initial public
offerings last quarter than any quarter since 2007, they were
for relatively modest amounts, averaging $102.6 million.
Massachusetts-based Matrix Partners, an investor in online
retailer JustFab and an early investor in Apple, raised
the largest new fund of the quarter, at $450 million. Scale
Venture Partners followed with a $300 million fund, and
Foundation Capital raised a $282 million fund.