Tuesday, July 8, 2008

Report: VC fundraising climbs while overall PE is down

By Mass High Tech Staff

Fundraising by U.S. venture capital firms increased 15 percent to $11.5 billion raised in the first half of 2008 as compared to the same time frame last year, according to the industry publication Dow Jones Private Equity Analyst.

The report said that 72 funds raised capital during the first half of the year compared with $10 billion raised by 62 funds during the first two quarters of 2007.

California-based Lightspeed Venture Partners raised the largest VC fund in the nation by midyear, totaling $800 million, the firm’s eighth fund, Dow Jones reported.

U.S. private equity firms raised $132.7 billion across 185 funds, 3 percent below the $137.2 billion raised by 199 funds during the first half of 2007. The full-year fund-raising record of $313 billion was set in 2007, according to Dow Jones.

Leveraged buyout fundraising declined 20 percent compared to the same period last year as firms raised only $85.5 billion across 75 funds in the first half of 2008, down from $107.6 billion raised in 91 funds.