Venture capital fund raising improved slightly in the second quarter from the first three months of the year, according to Dow Jones VentureOne.
However, the $3.22 billion raised between April and June was 62 percent under the $8.5 billion raised in the same quarter a year ago.
Last month, Thomson Financial and the National Venture Capital Association reported much different figures. Sixty-eight funds raised $7.184 billion, up from 71 funds raising $5.59 billion to open the year, according to their figures.
So far this year, VentureOne reported that funds have generated $6.4 billion, which is less than half the total generated in the first six months of 2006. VCs raised $3.1 billion to open 2007, and that was the lowest total since the $2.2 billion raised in the second quarter on 2004.
Noro-Moseley in Atlanta closed on $110 million during the quarter.
VentureOne cited the lack of a close by a “mega” fund contributed to the lower total. Five VC firms alone raised $7.9 billion in 20066, the service noted.
Only 15 firms announced fund closings in the quarter compared to 25 in 2006.
“Comparing 2007 to 2006 is almost unfair, as by this point last year we had already seen three ‘mega’ funds raise more than $4.3 billion in capital,” said Jessica Canning, director of global research for Dow Jones VentureOne, in a statement. “Remove those funds from the equation and what we’re seeing is clear: Venture firms may be raising fewer funds than in years past but they are raising decidedly more capital, which is allowing them to extend the length of time between fund raisings.”
Institutional Venture Partners and Venrock each raised $600 million to top the second quarter statistics.
The mean for funds closed to date is $190 million, compared to $194 million in 2006 and $201 million in 2005.
Recent quarterly totals include:
Q2 07: $3.2 billion
Q1 07: $3.1 billion
Q4 06: $4.6 billion
Q3 06: $7.5 billion
Q2 06: $8.5 billion
Q1 06: $4.2 billion