But, Strongest Quarter by Dollars Raised Since Q3 2012
Positive Momentum as Recent Vintage Performance Improves
In Q4 2013, 49 US venture capital funds raised $4.9B. While this was the strongest quarter by dollars raised since Q3 2012, 2013 was the weakest annual fundraising period since 2010. Number of funds raised fell 11% from 2012, while dollars raised fell 15%. Average fund size also dropped 4% to $90MM.
First time funds represented 28% of the number of funds raised in 2013, down from 34% in 2012. Additionally, first time funds accounted for only 9% of total capital raised in 2013, demonstrating continued consolidation in the venture industry.
The largest first time fund raised in Q4 2013 was TTCP Fund I, LP, which is based in Minneapolis and raised $132MM to target healthcare investments. The largest funds raised in Q4 2013 were OrbiMed Private Investments V, LP at $699.5MM and General Catalyst Group VII, LP at $675MM. Greylock XIV, LP was the largest fund raised in 2013, totaling $1B.
Bobby Franklin, President & CEO of the NVCA, added that,
Venture capital fundraising in 2013 ended much in the way it began – with continued concentration within the larger funds and a sense of optimism for the coming year. The difference today is that there is hard evidence of an improving exit market, which will actually help realize some of this positive momentum as limited partners again include venture as a vital component of their portfolio. If the IPO market continues to strengthen and receive quality offerings, we can expect more VCs involved in those exits to raise money in 2014, which will bode well for a new crop of startups looking to raise capital.”
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