WASHINGTON, DC, April 8 Fundraising by U.S.
venture-capital firms dropped 14 percent in dollar terms to
$4.05 billion in the first quarter, marking a weak start for an
industry that is fighting investor concerns about weak returns.
The firms raised just $4.05 billion, the National Venture
Capital Association and Thomson Reuters said, marking a decline
from both the fourth quarter and the year-earlier quarter.
Just 35 funds raised the cash, compared to 53 a year
earlier. That is the smallest number of funds raising money
since late 2003, the NVCA said.
Returns for venture capital generally have been
underperforming the stock market. For the ten-year period ended
Sept. 30, the latest available, venture capital returned 6.1
percent, compared to 10.3 percent for the Nasdaq composite
index, according to consultancy Cambridge Associates.
Battery Ventures, known for information-technology
investments such as content-delivery network Akamai
Technologies, raised the largest new fund of the
quarter, at $650 million. Third Rock Ventures followed with a
$516 million fund, and Spark Capital raised a $450 million fund.