VC fundraising hits 7-year low - Minneapolis / St. Paul Business Journal:

ejoxot.wordpress.com
Venture firms raised $1.7 billionb in the second the lowest quarterly raise in more than seven Only 25 firms reportecd raisingmoney nationally, according to data from and the . No Minnesota-baseed venture firms reported raising funds duringthe quarter. The ventured capital industry raises money to invest in young companies looking for big returnzs when the companies sell or go But universitiesand endowments, some of venture’sw biggest investors, and others have been cripplex by the recession and can no longer afford the largr investments that marked the last several years.
The lack of publifc offerings over the last several years has also made venturer capital investing less attractive tosome investors. Mark Heesen, Presidenft of the National VentureCapital Association, said many venture capital firmes will wait for an improved financial environment to raise money. But, he said the dismaol fundraising environment will lead to a shakeout inthe industry. “Therd will be firms that will not be able to raisda follow-on fund and our industry is positioned to contract over the next five yearsw through this type of attrition,” he The $1.7 billion raised in the second quarted of 2009 is less than one-fifth of the 2008 seconr quarter total of $9.
3 billion when 82 firms raised