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MHT's Jackie Noblett: VC funds run short in 2009
Startups seeking later-stage funds may have the hardest time in 2010, as U.S. late-stage venture capital firms suffer from a hangover after 2009’s dismal fundraising numbers, which affected their segment worse than any other in the domestic VC industry, according to Dow Jones LP Source.
The industry tracker today released an analysis of 2009 venture capital fundraising numbers published last week, which showed that just eight late-stage funds raised money in 2009, totaling $781 million. While early-stage and multi-stage funds both saw fundraising numbers drop by half from 2008, late-stage funds lost 78 percent off the $3.6 billion raised over 16 funds in 2008.
Limited-partner investors will stay away from late-stage funds until liquidity markets thaw further, Dow Jones analysts predicted.
Overall, U.S. venture capital fundraising fell to $13 billion across 120 funds in 2009, a 55-percent drop below the $28.7 billion raised by 204 funds in 2008, according to Dow Jones. It was the VC industry’s weakest fundraising year since 2003.
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