Significantly fewer venture capital funds raised significantly less money in the second quarter, according to the latest data from Thomson Reuters and the National Venture Capital Association.
A total of 25 funds nationwide raised $1.7 billion from institutional investors and wealthy individuals in the second quarter, the survey found. By contrast, 49 funds raised $4.6 billion in the first quarter of this year.
The number of venture capital funds that raised money in the second quarter was the fewest since the third quarter of 1996; the amount of money raised was the least since the first quarter of 2003.
"The slower venture fundraising activity is no surprise given the current environment," Mark Heesen, president of the Venture Capital Association, said in a prepared statement. He added that many firms are waiting until 2010 or later to raise money in anticipation of improved conditions.
Venture capital funds take the money they raise and invest it in young companies with high-growth potential. In the Triangle, dozens of information technology and biotechnology companies rely on venture capital to finance their research and development and expansion.
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