NEW YORK, NY — Venture capital firms raised more than $10 billion in the second quarter this year, posting the strongest quarter since 2007 and setting several other records, according to the Fundraising Report by Thomson Reuters and the National Venture Capital Association (NVCA). VCs pulled in $10.3 billion for 74 funds, up 10 percent from the first quarter.
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 in a statement.
“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.”
The report says 43 were follow-on funds and 31 were new during Q2, a 63 percent jump over first-time funds raised during Q1. The second quarter was the strongest for first-time funds since Q1 of 2014, when 32 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. Early stage focused New Enterprise Associates 15 led total commitments in the quarter, raising $2.8 billion, the most an early stage firm raised since records began in 1980.