You are here:
Home /
BUSINESS / Recession hitting venture capital hard
Recession hitting venture capital hard
By News Desk on July 13, 2009 · Comment ·
Venture capital keeps getting squeezed as an asset class. The second quarter of 2009 saw the lowest level of capital going into VC funds since the first quarter of 2003, according to the National Venture Capital Association. During the second quarter, VC funds in the U.S. raised only $1.7 billion, an 82 percent drop from the second quarter of 2008, when $9.3 billion was raised. The amount raised is 63 percent less than than the $4.6 billion raised during the first quarter of 2009 (see interactive iCharts below).
The number of funds which raised capital also dropped in half from last quarter to 25 funds. And the average amount of new capital going to each fund was $68 million, down from $94 million in the previous quarter.
Capital is fleeing the sector, partly because there is less capital to go around, and partly because venture capital exits appear to be blocked.
Venture capital was down 82 percent from the second quarter last year as the recession keeps squeezing sources.
The second quarter of 2009 saw the lowest level of capital going into VC funds since the first quarter of 2003, according to the National Venture Capital Association. During the second quarter, VC funds in the U.S. raised only $1.7 billion, an 82 percent drop from the second quarter of 2008, when $9.3 billion was raised. The amount raised is 63 percent less than than the $4.6 billion raised during the first quarter of 2009.
TechCrunch reports that the number of funds which raised capital also dropped in half from last quarter to 25 funds. And the average amount of new capital going to each fund was $68 million, down from $94 million in the previous quarter.
It said capital is fleeing the sector, partly because there is less capital to go around, and partly because venture capital exits appear to be blocked.
