Source: John Cook, Geekwire, October 10, 2011.
The Thomson Reuters/National Venture Capital Association report on venture capital fundraising finds that VC funds raised $1.72 billion in the third quarter of 2011–the lowest level since 2003. The report is based on fifty-two funds raised money during the quarter.
The president of the National Venture Capital Association, Mark Heesen, said that “the quarter’s low fundraising numbers are reflective of ongoing challenges within the venture capital exit markets. Economic instability continues to impact the ability of venture-backed companies to go public which, in turn, has prevented many venture firms from delivering solid returns to their investors. Until we begin to see a steady and sustainable flow of quality IPOs which return cash, limited partners will remain on the sidelines and the venture industry will continue to contract. This situation is one that needs to be rectified in the near term if we want to have adequate dollars to invest in our country’s startup companies in the long run.”