Venture fundraising dips |
Connect with TechFlash on our Facebook page for all the latest technology news headlines and commentary, plus information and access to special events, photos from events, promotions and more.
Today On Techflash
- Hey recruiters: Here's an R&D lab run by, and for, students
- WTIA announces Industry Achievement Award finalists
- What's the most you'll pay for an app? Execs have their limits
- Apple seen unveiling iPad 3 in first week of March
- Paul Allen's Vulcan wants taller South Lake Union buildings
- Bezos loses $300M on Forbes' billionaire list
- Paul Allen's Vulcan wants taller South Lake Union buildings
- Apple seen unveiling iPad 3 in first week of March
- Microsoft, Apple speak out on patents amid mobile-technology wars
- What's the most you'll pay for an app? Execs have their limits
- Startup seeks a new start: What's next for EquaShip?
- WTIA announces Industry Achievement Award finalists
- Startup seeks a new start: What's next for EquaShip?
- UW opens New Ventures Facility for startups
- Pioneer Square: a little fiber to go with all that brick
- 'Fast Pitch Forum' to debut May 27 with some familiar names
- What's the most you'll pay for an app? Execs have their limits
- WTIA announces Industry Achievement Award finalists
Mass High Tech
Venture fundraising dips
When it comes to the venture capital business nearly everything is in decline -- dollars invested, deals performed, IPOs, valuations, etc. So, it is not really a huge surprise, nor is it really such a bad thing, that the amount of money flowing into venture capital firms also is taking a turn south. That's the latest from the National Venture Capital Association and Thomson Reuters, which found that just 17 venture funds raised $1.6 billion during the third quarter.
To put that in historical perspective, during the third quarter of last year 63 funds raised a total of $8.5 billion. No wonder some are saying that the VC business is undergoing what NVCA president Mark Heesen has even called a "Darwinian Contraction."
In fact, the 17 funds raised during the most recent quarter was the smallest number in 15 years.
But Heesen said there's actually some bright spots on the horizon for those who manage venture capital funds.
"Anecdotally we are hearing that fundraising activity is accelerating as more firms that were waiting for economic recovery are beginning to formally seek commitments,” he said. “The reality, however, is that many limited partners are still determining their long term strategies in wake of the past year's financial crisis and that slows the process down considerably. We expect commitment levels to remain modest for the remainder of 2009 with gradual increases beginning in 2010.”
But there remains a lingering question: What's the appropriate size of the U.S. venture capital industry?
We've chatted before about the tectonic shifts going on in the venture industry, driven in part by a challenging economic environment (Few exits) as well as a new breed of entrepreneur who doesn't need as much capital as five or 10 years ago.
Those things, as well as new strategies from endowments, pension funds and other financial institutions that support VCs, are altering the way venture funds go about raising capital.
Many of the Seattle area venture capital firms are still sitting on decent war chests -- including Ignition, Madrona, Maveron and OVP. But we've also heard from numerous sources that Frazier Technology Ventures has put the brakes on new fundraising plans.
If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.
TechFlash Team
Recent Sponsor Posts
Who's creating today's energy efficient buildings? Find out at the BetterBricks Awards, Feb. 16
BetterBricks Awards salute the individuals leading the way for high performance commercial buildings with an emphasis on energy efficiency. Join us as we recognize these standout green building professionals.
Award categories include: Advocate; Architect/Designer; Facility Manager/Operator; and Owner/Developer.
Keynote Speaker: Kevin Kampschroer, Director of U.S. GSA's Office of Federal High Performance Buildings. Kevin leads the U.S. General Services Administration's efforts in building sustainability and accelerating industry adoption of sustainable principles across all aspects of a building's life.
Register here by February 10!
If you are interested in buying a table, email Monica Alquist or call her at 206-876-5404.
The Triple Door Presents: The Atomic Bombshells "J'ADORE!: A Burlesque Valentine"
Seattle's reigning Burlesque super-troupe delivers a gorgeous and glittering VALENTINE featuring some of the Bombshells' most exhilarating acts to date. J'Adore! promises to celebrate l'amour with good humor, style, and a healthy dose of dazzle! Bring a friend, a lover, a family member, or a secret crush, and celebrate with the Valentine's Burlesque spectacular that will leave you shouting: "J'ADORE......The Atomic Bombshells!" The incomparable Jasper McCann emcees with high style and charm.
Please visit www.thetripledoor.net for a full schedule of future performances.
The Triple Door Presents: Bob Mould – See A Little Light: An Evening of Reading and Music
"Bob Mould. Those two words are synonymous with integrity. From Husker Du in the last century to right at this moment, Bob is the real deal, writing and playing music for music's sake. He's a great songwriter and performer. I have been a fan of Bob's for thirty years now with no end in sight." -Henry Rollins
Please visit www.thetripledoor.net for a full schedule of future performances.
Why Choose BDO for your SOC (previously SAS 70) Reports?
BDO’s experience in providing attestation services (SAS 70/SSAE 16, AT 101, AT 201, AT 601, etc.) to a broad range of industries, and our team of skilled professionals distinctly qualifies us to serve as your company’s Service Auditor. By leveraging the BDO global network of control specialists, we are poised to provide global services in more than 1,000 offices and across 119 countries. Many organizations find that investing in reports on controls may result in benefits, including:
• Increased client confidence
• Improved competitive advantage
• Minimization of frequent audits
• Streamlined business processes and controls
• Enhanced risk management
For detailed information contact Paul Martini at pmartini@bdo.com.
