"Comparing 2007 to 2006 is almost unfair, as by this point last year we had already seen three 'mega' funds raise more than $4.3 billion in capital," said Jessica Canning, director of global research for Dow Jones VentureOne. "Remove those funds from the equation and what we're seeing is clear: Venture firms may be raising fewer funds than in years past but they are raising decidedly more capital, which is allowing them to extend the length of time between fund raisings."
In the second quarter of 2007, both Institutional Venture Partners and Venrock raised $600 million funds -- IVP XII and Venrock Associates V, respectively -- and four other firms closed funds of more than $250 million. Overall, the median size of funds closed to date in 2007 is $190 million, which is on par with the median of $194 million for all of 2006, which was the second-highest annual median on record behind the $201-million median fund size of 2005.
Another statistic that highlights the trend of fewer-but-larger venture funds is that nearly 13% of funds raised in the first half of 2007 now have more than $500 million under management, a figure only bested by last year's annual total.
The fund-raising figures included in this release are based on aggregate findings of VentureOne's proprietary research. This data was collected by surveying professional venture capital firms and from secondary sources. No statement herein is to be construed as a recommendation to buy or sell securities or to provide investment advice.
