1


Q4 2013 Venture Fundraising Update

// Wiley Becker - Principal, Square 1 Ventures

+ Contact
January 22, 2014
  • Email
Weakest Annual Fundraising Period Since 2010
But, Strongest Quarter by Dollars Raised Since Q3 2012
Positive Momentum as Recent Vintage Performance Improves

Q3 2013 Venture Fundraising

Thomson Reuters and the National Venture Capital Association

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.”

 

The views, opinions, beliefs, conclusions, and other information expressed in this material is not given, verified, or endorsed by Square 1 Financial, Inc. or any of its affiliates. Instead, this material is solely the work of the author, and represents his views, opinions, beliefs, conclusions, and other information he wishes to present, in all cases without any manner of endorsement from or verification by Square 1 Financial, Inc. or any of its affiliates. 

This material, including without limitation the statistical information herein, is provided for informational purposes only. The material is based in part upon information from third-party sources that the author believes to be reliable, but which has not been independently verified by the author, Square 1 Bank, or any Square 1 affiliate, and, as such, we do not represent that the information is accurate or complete. The information should not be viewed as tax, investment, legal, or other advice, nor is it to be relied on in making an investment or other decision. You should obtain relevant and specific professional advice before making any investment decision. Nothing relating to this material should be construed as a solicitation, offer, or recommendation to acquire or dispose of any investment, or to engage in any other transaction. 

All material presented, unless specifically indicated otherwise, is under copyright to the author or Square 1 Financial, Inc. (or its affiliates), and is for informational purposes only. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied, or distributed to any other party, without the prior express written permission of Square 1 Financial, Inc. or the author. All trademarks, service marks, and logos used in this material are trademarks, service marks, or registered trademarks of Square 1 Financial, Inc. or one of its affiliates. 

Square 1 Bank is a member of FDIC and Federal Reserve System. Square 1 Bank and the Square 1 logo are among the trademarks registered to Square 1 Financial, Inc. Square 1 Asset Management, a registered investment advisor, is a non-bank affiliate of Square 1 Bank. Products offered by Square 1 Asset Management are not FDIC insured, are not deposits or other obligations of Square 1 Bank, and may lose value. 

 


Back To Insights

  • Email