U.S. venture capital firms raised more cash in the first three months of this year than at any time since the final quarter of 2007, but it’s still a handful of funds driving up the numbers.
Venture firms raised $9.64 billion in the first quarter, a 111% increase over a year ago when the total take was $4.56 billion, according to Dow Jones VentureSource, a data provider owned by VentureWire publisher Dow Jones & Co.
That’s still well below the $13.21 billion collected in the fourth quarter of 2007, which was a strong year for venture capital exits and preceded the global financial crisis that left many limited partners unwilling or unable to make new fund commitments.
Venture capital fundraising has been in the range of $20 million to $22 million for the past three years, and the amount raised so far this year is nearly halfway to that mark. An IPO market that has been the best since 2000 helped increase the flow of capital into the venture industry.