A new report from Dow Jones VentureOne reveals that U.S. venture firms have raised less capital during the first half of 2007 than in any other six-month period in almost four years.
Venture funds in the U.S. totaling $6.36 billion were closed between Jan. 1 and June 30, 2007, almost exactly half the dollar amount raised during the same period the previous year. Although fundraising tends to fluctuate from quarter to quarter, the numbers were fairly consistent in early 2007, with funds raising $3.13 billion in the first quarter and $3.22 billion in the second.
The half-year total puts fundraising on a pace well behind last year's, when a total of $24.73 billion was raised over 12 months.
The 32 funds closed thus far in 2007 also represent diminished activity compared to last year. In 2006, a total of 98 funds were raised, including 46 in the first half of the year.