Venture Capital Firms Struggling to Raise Funds to Invest

July 14, 2010 at 9:36 am Leave a comment

Here is another sign of  our less than robust economic recovery. Entrepreneurs aren’t the only ones struggling to find capital in these choppy economic times. The venture capitalists who write the checks are encountering their own hard realities on the fundraising trail. A report out today from Thomson Reutuers and the National Venture Capital Association indicates that dollar commitments to VC funds dropped by 49 percent during the first quarter as just 38 funds raised $1.9 billion. That marks the lowest dollar total since the third quarter of 2003.

That could spell trouble for many Seattle area firms which will need to go out in the coming year or two in order to. As I’ve pointed out before, positive M&A and IPO exits for venture capital firms in the state have been few and far between. Already, one Seattle area firm — Frazier Technology Ventures —decided to pull the plug on its financing efforts last fall. Will others be forced to follow suit?

Source: TechFlash


Entry filed under: Entrepreneurship, Venture Capital. Tags: , , , .

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