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Alternative Market Briefing

Record number of US venture fund raise 23% more assets by Q3 than in 2018

Friday, November 15, 2019

Laxman Pai, Opalesque Asia:

2018 was a record-breaking year for US-based venture capital funds, and 2019 is poised to overtake it in terms of both the number of funds closed and amount of capital raised.

At the end of Q3, 299 venture capital funds have already closed this year, raising an aggregate $35bn- a significant leap of 23% from the same period last year, in which 242 funds secured $29bn, said Preqin.

The fourth quarter typically accounts for a large portion of the annual fundraising, so this is a strong indication that 2019 will be another successful year for US venture capital managers, it said.

As with last quarter, the 10 largest funds closed in Q3 2019 are run by experienced managers. Of particular note, Coatue Management closed its first pure venture capital fund, Coatue Early Stage Fund, in the quarter.

The fund, the third-largest closure in Q3, blew past its target of $500mn, raising $700mn to invest in technology start-ups. The firm has a successful track record in the hedge fund industry and had some limited exposure to venture capital through its hybrid hedge fund/venture capital series before raising its first dedicated venture capital fund this year.

VC funds takes slightly more time to close

Funds are taking just slightly more time to close in 2019 than in past years, spending an average of 17.6 months in the market, Preqin noted.

For the sixth year in a row, the majority of funds are exceeding their target, demonst......................

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