Jul 8, 2015 - New York, July 8, 2015 â U.S. venture capital firms raised $10.3 billion .... We combine industry expert
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Venture Capital Fundraising tops $10 Billion in Q2, Recording Strongest Quarter Since 2007 Largest All-Time Early Stage Venture Capital Fund Closed During Second Quarter New York, July 8, 2015 – U.S. venture capital firms raised $10.3 billion for 74 funds during the second quarter of 2015, an increase of 10 percent compared to the number of funds raised during the first quarter of 2015, and a 39 percent increase by dollar commitments, according to the Fundraising Report by Thomson Reuters and the National Venture Capital Association (NVCA). Venture capital dollar commitments during the second quarter of 2015 increased 27 percent compared to the second quarter of 2014 and marked the strongest three-month period for venture capital fundraising since the fourth quarter of 2007 when U.S. venture capital firms raised just over $10.4 billion.
Year/Quarter 2006 2007 2008 2009 2010 2011 2012
Number of Funds
Venture Capital ($M)
236 235 214 162 176 192 217
31,107.6 29,993.7 25,054.9 16,103.8 13,283.6 19,080.5 19,844.9
2013 208 17,702.0 2014 263 30,711.3 2015 134 17,712.2 1Q'14 71 10,040.0 2Q'14 83 8,133.5 3Q'14 70 6,371.0 4Q'14 82 6,166.8 1Q'15 67 7,402.0 2Q'15 74 10,310.4 Source: Thomson Reuters and National Venture Capital Association *Fund commitments closed across multiple quarters are represented as one fund in the annual totals
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“After a sustained period of moderation over the last year, venture capital fundraising increased during the second quarter, marking the strongest fundraising period since before the financial crisis of 2008 with more than $10 billion in total commitments,” said Bobby Franklin, President and CEO of NVCA. “If this pace continues, we are certainly on track to surpass total fundraising for all of 2014 in what we hope is a more favorable environment across the venture industry, not just isolated at the top among a few marquee firms. What this all means is that fundraising is finally scaling up to the level of venture investment we’ve witnessed over the past few years, and the institutional investors are recognizing the great opportunities to invest in the next generation of American companies.” There were 43 follow-on funds and 31 new funds raised during the second quarter of 2015, a 1.4 to-1 ratio of follow-on to new funds. The number of new funds raised during the second quarter marks a 63 percent increase from the number of first-time funds raised during the first quarter of this year. The second quarter of 2015 marks the strongest quarter for first-time funds since the first quarter of 2014 when 32 first-time funds saw fundraising commitments. The largest new fund reporting commitments during the second quarter of 2015 was from Palo Alto, California-based Geodesic Capital Fund I, L.P. which raised $250.0 million for the firm’s inaugural fund. A “new” fund is defined as the first fund at a newly established firm, although the general partners of that firm may have previous experience investing in venture capital.
Year/Quarter 2010 2011 2012 2013 2014 2015
No. of New
No. of Followon
Total
53 62 74 65 101 47
123 130 143 143 162 87
176 192 217 208 263 134
1Q'14 32 39 71 2Q'14 23 60 83 3Q'14 27 43 70 4Q'14 28 54 82 1Q'15 19 48 67 2Q'15 31 43 74 Source: Thomson Reuters and National Venture Capital Association
Total commitments to U.S. venture funds in the second quarter of 2015 was led by New Enterprise Associates 15, L.P., which raised $2.8 billion in the largest all-time early stage venture capital fund since records began in 1980. Institutional Venture Partners XV, L.P. which raised $1.3 billion and Social Capital Partnership III, L.P. raised $600.0 million.
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Methodology The Thomson Reuters/National Venture Capital Association sample includes U.S.-based venture capital funds. Classifications are based on the headquarter location of the fund, not the location of venture capital firm. The sample excludes fund of funds. Effective November 1, 2010, Thomson Reuters venture capital fund data has been updated in order to provide more consistent and relevant categories for searching and reporting. As a result of these changes, there may be shifts in historical fundraising statistics as a result of movements of funds between primary market & nation samples and/or between fund stage categories. About Thomson Reuters Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world's most trusted news organization. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges (symbol: TRI). For more information, go to www.thomsonreuters.com. About National Venture Capital Association Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites its nearly 400 members through a full range of professional services. For more information about the NVCA, please visit www.nvca.org.
