Venture capital firms across the nation raised more money in the first quarter than they did during the same period in 2007, but the capital flowed into about a third fewer funds.
In total last quarter, 57 funds raised $6.265 billion. That is up 0.8 percent from the $6.215 billion raised during the first quarter of 2007, according to the Arlington-based National Venture Capital Association and Thompson Financial, which released a new report on Monday.
The number offunds gathering capital dipped however, dropping from 83 during the first quarter of 2007 to 57 during the same period this year. Most of that change came from a decline in the number of new funds. In the first quarter of 2007
There were 22 new venture capital firms raising money during the first quarter last year, but only five sought funds during the same period this year.
Fifty-two follow-on funds raised money during the first three months of 2008, a drop from 61 during those months in 2007.
Over the past two to three years, firms have raised significant capital, and they’re starting to deploy the funds and invest in companies, said Emily Mendell, vice president of strategic affairs for NVCA, which accounts for the lower fund volume.
“I think fundraising will continue at a healthy pace,” said Mendell.
Significant interest in life sciences and clean technologies will “likely drive fund sizes upwards for the foreseeable future,” said Mark Heesen, NVCA president, in a statement.
The only firm headquartered in the Washington metro area to raise funds during the first quarter was Global Environment Fund Management Corp., according to Mendell. The Chevy Chase-based firm has raised a total of $227 million so far, of which $27.5 million was raised in the first quarter of 2008, she said. Executives from Global Environment Fund Management Corp. did not immediately return calls for comment.
NVCA and PricewaterhouseCoopers will publicly release data on Monday pertaining to the investments made by venture capital funds the first quarter.
