VC Funds Raise $11.2B in Second Quarter

Thomson Financial and the National Venture Capital Association (NVCA) are reporting that private equity fundraising hit new heights in the second quarter of 2006, with fifty venture capital funds raising a total of $11.2 billion in the second quarter. In numbers reported Monday, Thomson and the NVCA said that the amount raised was the highest level since the first quarter of 2001. In addition, they reported that buyout and mezzanine funds raised $30.8 billion. The biggest VC funds raised were Oak Investment Partners XII, with $2.56 billion raised, and New Enterprise Associates 12, with $2.25 billion. However, despite the amount raised, most of the funding was from follow-on venture capital funds; only eight new funds raised funding this quarter, according to the report. Despite the fundraising explosion, Thomson and the NVCA predict that the 2004-2006 fundraising cycle will only total around $70 billion, compared to the $200 billion raised during the 1999-2001 fundraising cycle.