Fund-Raising for Venture Firms Fall 22%
Venture capital firms raised $55 billion in 2001, down 22% from the year before amid declining returns--though investors increased commitments to health-care funds, according to a report.
VentureWire, an industry news service based in New York, said 200 funds were raised in 2001, including 15 of $1 billion or more, led by Apax Partners & Co.'s $4-billion Apax V. In 2000, 250 funds raised $70 billion, including 18 billion-dollar funds.
The statistics don’t include buyout funds such as the $4 billion-plus raised by Blackstone Group this year.
Venture investors, including pension funds and college endowments, have less appetite for investments in technology start-ups after share prices plunged, producing the worst venture returns on record, according to Venture Economics and the National Venture Capital Assn.
Venture firms raised 23 funds dedicated to biotechnology, medical devices, health care and related investments in 2001, including a $500-million pool raised by Prospect Venture Partners, VentureWire said in its “New Venture Funds” report.