2010 saw venture capital fundraising drop for the fourth consecutive year.
According to a report by the National Venture Capital Association, 2010 saw venture capital fundraising drop for the fourth consecutive year. During that time, the number of funds has shrunk from 235 to 157 while funds raised have dropped more than 61% (from $31.9 billion to $12.3 billion).
According to the head of the NVCA, don’t expect that trend to reverse itself in the year ahead.
“Given current conditions, a limited number of venture firms will be able to successfully raise new funds in 2011 and many of these will be smaller than previous funds raised,” said Mark Heesen, president of the NVCA.
What does the VC community itself think? It depends who you ask. Roughly equal numbers see an increase in fundraising (38%), a decrease in fundraising (32%) and no change (30%).
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Source: Mark Marich | Entrepreneurship | Kauffman Foundation