Editor’s note: There was more money raised in U.S. VC funds since Q2 of 2016 but in fewer funds. What’s going on here? Some likely reasons: Institutional investors, e.g. universities and pension funds are flush with monies from public markets and are looking to for ‘meaningful returns'. Interest rates are low. (who still uses a Savings account?) There are more foreign investors looking for good returns. Worth the read.
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Many in Silicon Valley may be worrying more and more about how to transform their startup stakes into cold, hard cash. But that’s not stopping institutional investors from writing out some very big checks to venture capital firms.
Somewhat astonishingly, U.S. firms just closed on more capital commitments than they have since the second quarter of 2006, according to new data from the National Venture Capital Association and Thomson Reuters. In hard numbers, 57 U.S. firms raised $12 billion in the first quarter, a 59 percent jump in dollar commitments over the first quarter of 2015.
Institutional investors aren’t necessarily spreading the wealth, with the number of funds raised down 17 percent from this time last year.
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