Dollars raised by venture capital firms fell 17% in the third quarter, but more funds were able to find new money. In the three month period, 53 U.S.-based venture funds raised $4.98 billion, according to Thomson Reuters, publisher of this blog, and the National Venture Capital Association. In the second quarter, 43 funds raise $5.97 billion.
Capital concentration diminished during the period. The top five venture capital funds accounted for 55% of total fundraising in the third quarter compared to 80% in the second quarter of 2012, according to Thomson Reuters and the NVCA. Venture capital fundraising for the first nine months of 2012 reached $16.2 billion, a 31 percent increase by dollar commitments compared to the first nine months of 2011.
The optimism of the venture capital community will be measured at Venture Capital Happy Hour (http://www.VCHappyHour.com), on Wednesday, November 7, 6:00pm. This reception will feature Andrew Sherman, author of “Raising Capital”. Visionaries, investors and advisors of the next Facebook, Google and Groupon are invited to join Venture Capital Happy Hour, organized by Golden Networking (http://www.goldennetworking.net), great opportunities for practitioners to speak with unprecedented candidness about their trade, both opportunities and challenges.