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New VC Funds Median Size Tops $200 million in 2006
The median size of U.S. venture funds raised in 2006 has exceeded $200 million for the second year straight, according to industry tracker Dow Jones VentureOne. In 2005 the median was $200 million.
A total of 16 percent of the funds that were raised in the previous year were $500 million or more, the highest since VentureOne started amassing this data in 1992. Simultaneously, just 34 percent of funds closed in 2006 were less than $100 million, which is the smallest percentage on record.
However, the total amount of money that was raised through venture capital funds during the past year plunged more than a staggering figure of $600 million below the 2005 total. It was after four years that this total amount declined. To add to the declining trend the number of firms also fell down by twenty nine.In the Carolinas, Intersouth headed the raising of the funds with $275 million. The Southern Capitol Ventures appended a $15 million round. The Aurora Funds as well as NC IDEA are in the process of finishing rounds reckoned to top $100 million and $16 million respectively. The total funds raised by the US fund raising in 2006 is $24.33 billion. Which has decreased from the 2005 figure of $24.94 billion
The fourth quarter saw a torpid growth in the venture capital raised. The total amount raised in the fourth quarter was $4 billion, the lowest ever since the first quarter of 2005 when only $2.7 billion was raised.
Stephen Harmston, Director of global research for VentureOne, said in a statement, “The entire private equity industry has been supportive of larger funds being raised by established firms with positive track records over the past two years, so it’s not surprising that the venture capital market has fallen in line with that trend. It remains to be seen whether the slowdown in 4Q will prove to be a sign of a curtailment of that trend, or just a short-term pause for venture capital funds. What is true is that venture capital funds in 2005 and 2006 have kept a very close pace with the amount of investment that is occurring.”
For more details read the press release: