Though rising numbers from the final quarter for
2009 had many hopeful that 2010 would see a rebound of venture capital
funds, new data from the Nation Venture Capital Association (NVCA) is
bound to disappoint as Q1 2010 saw the lowest
first quarter numbers (PDF) in 17 years. According to the NVCA,
just $3.6 billion has been raised so far this year by VCs compared to
$5.2 billion in 2009 and $7.1 billion 2008.
Back in January, we postulated that the uptake in fundraising by VCs during the final quarter of 2009 could lead to increased VC spending in 2010. The first quarter did see record breaking merger and acquisition numbers, but as NVCA president Mark Heesen points out, the IPO market continued to struggle - a fact he says may have contributed to the new low numbers for VC funds.
"Over the last two years, alternative asset allocations have declined and the exit market has suffered, putting venture firms in the unenviable position of communicating their value in an extremely challenging environment," says Heesen. "Many firms have been waiting until the exit market improves before embarking upon their fundraising efforts."
To read the full, original article click on this link: 2010 Off to Slowest VC Fund Raising Start Since 1993, Says NVCA - ReadWriteStart
Author: Chris Cameron
