BOSTON (TheStreet) -- Venture-capital firms raised the smallest number of funds in 15 years in the third quarter, weighed down by the credit crisis.
Firms raised 17 funds, the same number as in the third quarter of 1994, according to a report by the National Venture Capital Association and Thompson Reuters(TRI Quote). Venture-capital firms gathered $1.6 billion, the least since the first quarter of 2003, when they managed to raise only $938 million. So far in 2009, firms have collected $8.4 billion, compared with $28.6 billion for all of 2008.
"Many limited partners are still determining their long-term strategies in the wake of the past year's financial crisis, and that slows the process down considerably," said Mark Heesen, president of the NVCA, in a statement. "We expect commitment levels to remain modest for the remainder of 2009, with gradual increases beginning in 2010."
Venture-Capital Funds Sink to 15-Year Low