Venture Capital Fundraising Is Down Nearly 40 Percent In First Quarter of 2009

The first quarter of 2009 wasn’t just a dry one for venture-backed exits, very little money went into the coffers of VC funds as well. According to data released today by the National Venture Capital Association, only 40 funds raised new money during the quarter, down from 71 the year before (1Q08) and 47 the previous quarter (4Q08). Out of the 40 funds, only three were brand new.

In dollar terms, the total raised was $4.3 billion, down 39 percent from the year before (1Q08), but up 23 percent from the fourth quarter when it dipped to a low of $3.5 billion. At least the sequential comparisons are up. The largest capital raising was for August Capital’s $650 million fund. Bain Capital raised a $475 million fund, and Charles River Ventures raised a new $320 million fund.

Here are the stats (Source Thomson Reuters/ NCVA):

Number of U.S. Venture Funds Raising New Capital

1Q09: 40
4Q08: 47
3Q08: 62
2Q08: 78
1Q08: 71
4Q07: 85
3Q07: 77
2Q07: 85
1Q07: 81

Dollar Amount of New Funds Raised By U.S. Venture Capital Firms (in billions)

1Q09: $4.3B
4Q08: $3.5B
3Q08: $8.4B
2Q08: $9.3B
1Q08: $7.2B
1Q09: $4.3B
4Q07: $11.9B
3Q07: $8.6B
2Q07: $8.7B
1Q07: $6.5B

(Photo by MrVJTod)