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Laxman Pai, Opalesque Asia: Despite COVID-19 disrupting business operations, the number of US-based venture capital funds in the market has surpassed 1,000 for the first time in April, 2020.
According to the Preqin, at the beginning of April, 1,085 funds are seeking $99bn in investor commitments - both are record totals.
Given that the number of vehicles reaching a final close in Q1 2020 was down on the previous quarter, this is likely a result of the COVID-19 pandemic.
With social distancing and travel restrictions disrupting business operations, conducting successful fundraising in Q1 2020 was considerably challenging.
The report said that early-stage funds represent the greatest share of funds in the market as of April 2020. The 486 early-stage funds seeking capital represent 45% of all funds on the road, and the aggregate $30bn sought by these vehicles accounts for 31% of all targeted capital.
General venture capital funds are responsible for the bulk (51%) of targeted capital.
36% VC funds are focussed on technology
Information technology and healthcare remain active sectors for venture capital investment. Thirty-six percent of funds on the road are technology-focused, seeking an aggregate of $32bn, while 12% are looking to raise $20bn to invest in the healthcare industry.
Even before COVID-19 was declared a pandemic, firms were making large investments in US healthcare venture capital.
Of the 10 largest US-based venture cap...................... To view our full article Click here
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