Venture Fund-Raising Remains Slow So Far in 2010

U.S. venture capital (VC) companies raised $9.2 billion for 103 funds during the first three quarters of 2010, according to Dow Jones LP Source, an industry database that tracks venture and private equity fund-raising. Through September 2010, that represents a slight increase from the $8.9 billion raised for 105 funds during the same period in 2009, which LP Source says was a particularly tough year for raising VC capital.

Multi-stage VC funds — that finance companies from early to later stages in their development — had the most success raising capital during the first three quarters as financial backers showed a preference for diversified funds. Some 33 multi-stage funds raised $4.5 billion through September 2010, a slight increase from the $4.3 billion put into 38 funds during the same period last year.

Capital raised by early-stage funds fell 12% to $3.4 billion for 65 funds, while funding for later-stage funds, which LP Source says traditionally are the smallest sector for venture fund-raising, rose 71% as five funds raised $1.3 billion.

Related:

• U.S. Venture Capital Fundraising Drops by Half
• Financing Tips from Angel and VC Investors

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