VC Fundraising Q3 2007

Venture capital fundraising activity slowed in the third quarter of 2007, with 59 firms raising $6 billion, down from the previous quarter. This was the lowest number of firms raising money since 2001 and represented about 79% of the funds raised in the same period of 2006. Most funds raised were for early stage companies. While follow-on funds outnumbered new funds by over 6 to 1, the total raised by new funds was over $500 million, exceeding the amount raised in 5 of the last 12 quarters. The largest funds raised were Battery Ventures VIII at $750 million and Bessemer Venture Partners VII at $625 million.