Largest All-Time Early Stage Venture Capital Fund Closed During Second Quarter
NEW YORK, NY – U.S. venture capital firms raised $10.3 billion for 74 funds during the second quarter of 2015, an increase of 10 percent compared to the number of funds raised during the first quarter of 2015, and a 39 percent increase by dollar commitments, according to the Fundraising Report by Thomson Reuters and the National Venture Capital Association (NVCA). Venture capital dollar commitments during the second quarter of 2015 increased 27 percent compared to the second quarter of 2014 and marked the strongest three-month period for venture capital fundraising since the fourth quarter of 2007 when U.S. venture capital firms raised just over $10.4 billion.
“After a sustained period of moderation over the last year, venture capital fundraising increased during the second quarter, marking the strongest fundraising period since before the financial crisis of 2008 with more than $10 billion in total commitments,” said Bobby Franklin, President and CEO of NVCA. “If this pace continues, we are certainly on track to surpass total fundraising for all of 2014 in what we hope is a more favorable environment across the venture industry, not just isolated at the top among a few marquee firms. What this all means is that fundraising is finally scaling up to the level of venture investment we’ve witnessed over the past few years, and the institutional investors are recognizing the great opportunities to invest in the next generation of American companies.”
There were 43 follow-on funds and 31 new funds raised during the second quarter of 2015, a 1.4 to-1 ratio of follow-on to new funds. The number of new funds raised during the second quarter marks a 63 percent increase from the number of first-time funds raised during the first quarter of this year. The second quarter of 2015 marks the strongest quarter for first-time funds since the first quarter of 2014 when 32 first-time funds saw fundraising commitments.
The largest new fund reporting commitments during the second quarter of 2015 was from Palo Alto, California-based Geodesic Capital Fund I, L.P. which raised $250.0 million for the firm’s inaugural fund. A “new” fund is defined as the first fund at a newly established firm, although the general partners of that firm may have previous experience investing in venture capital.
Total commitments to U.S. venture funds in the second quarter of 2015 was led by New Enterprise Associates 15, L.P., which raised $2.8 billion in the largest all-time early stage venture capital fund since records began in 1980. Institutional Venture Partners XV, L.P. which raised $1.3 billion and Social Capital Partnership III, L.P. raised $600.0 million.
The Thomson Reuters/National Venture Capital Association sample includes U.S.-based venture capital funds. Classifications are based on the headquarter location of the fund, not the location of venture capital firm. The sample excludes fund of funds.
Effective November 1, 2010, Thomson Reuters venture capital fund data has been updated in order to provide more consistent and relevant categories for searching and reporting. As a result of these changes, there may be shifts in historical fundraising statistics as a result of movements of funds between primary market & nation samples and/or between fund stage categories.