Monday, April 7, 2008

Report: U.S. VC fund-raising jumps 29%

First-quarter fund-raising by U.S. venture capital firms increased 29 percent compared with the same period last year, according to a newly released report.

Thirty-two VC funds raised $4.97 billion during the quarter -- up from 22 funds worth a total of $3.84 billion in first-quarter 2007.

The increase occurred as fundraising by the nation's large leverage buyout funds decreased by 22 percent, the Dow Jones & Co report shows.

Venture and mezzanine funds gained ground because larger buyout funds took up less private equity investor attention, other, according to Jennifer Rosa, managing editor of Dow Jones Private Equity Analyst.

Thirty-three leveraged buyout funds raised $27.6 billion during the quarter compared with 34 funds raising $35.2 billion during the same period last year.

In total, U.S. private equity firms raised $58.5 billion in 81 funds, up nearly 32 percent over the $44.3 billion raised in 68 funds during the first quarter of 2007, the report shows.

The quarter's largest VC fund was raised by Essex Woodlands Health Ventures, with operations in California, New York, Houston and London. The firm raised $800 million for its Essex Woodlands Health Ventures VIII LP fund, according to the report.