Sat, Oct 1, 2022
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

U.S. micro venture capital fundraising momentum significantly slows down in Q1 2020

Wednesday, May 20, 2020

Laxman Pai, Opalesque Asia:

US-based micro venture capital fundraising slows in tandem with the overall market, but funds closed in Q1 2020 did so faster than recent vintages, following a record fundraising year for US-based micro venture capital funds in 2019.

According to Preqin, micro venture capital funds (sized at $100mn or less) secured just $1.1bn in the first quarter of 2020.

And with only 47 funds reaching a final close, the micro venture capital market is on track to record its lowest fundraising year since 2012, the report added.

The study undertaken by Preqin and the First Republic showed that the micro venture capital funds that did close in Q1 2020, however, did so with success.

On average, funds closed in Q1 had spent 15.3 months on the road, which reflects a significantly faster pace than recent vintages. And while the pace picked up, funds were still able to secure an average of 99% of their target size.

Since 2015, early-stage micro venture capital funds have achieved a greater average proportion of targeted close size than general micro venture capital funds. But in Q1 2020 general micro venture capital funds raised an average of 105% of targeted capital, which compares with 93% for early-stage micro venture capital funds.

General venture capital funds raised the largest amount of capital at $611mn, through 21 vehicles. Nearly the same number (20) of early-stage funds closed, but for a lower total of $360mn. There are more early-sta......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume

  2. Opalesque Video: Systematic Japan strategy follows the 'Keep it Simple' rule[more]

    B. G., Opalesque Geneva: For those looking to invest in the current opportunities underlying managed futures in Japan, here is a strategy that does just that, with the benefits of leverage, shorts, Big Data, proprietary technology, and academic research on market psychology. K2Q Capital'

  3. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: Castle Hall, the Du

  4. Opalesque Exclusive: How blockchain is helping the small guy invest in hedge funds[more]

    B. G., Opalesque Geneva: ADDX, Asia's largest private market exchange, is on a mission to democratise the private capital markets through blockchain and smart contract technology. With these technologies, the exchange can eliminate manual interven

  5. Opalesque Exclusive: Japan quant strategy uses academia as starting point of investment research[more]

    B. G., Opalesque Geneva: Shin Samurai is a thorough systematic Japan macro strategy, which takes advantage of behavioural biases by using mathematical and statistical techniques. It also relies heavily on academic research for idea generation, and combines the said research with a deep understand