Press Release Details

NEW YORK, July 13 /PRNewswire-FirstCall/ -- Just 25 venture capital funds raised $1.7 billion in the second quarter of 2009, according to Thomson Reuters and the National Venture Capital Association (NVCA). This level represents the smallest number of venture funds raising money in a single quarter since the third quarter of 1996 (21 funds) and the lowest level of dollars committed since the first quarter of 2003 when $938.1 million was raised.

    Fundraising by Venture Funds

    Year/Quarter   Number of       Venture
                       Funds   Capital ($M)

    2004                 211      19,156.0
    2005                 239      28,767.4
    2006                 241      31,925.0
    2007                 251      36,064.9
    2008                 221      28,395.9
    2009                  70       6,312.8
    2Q'07                 86       8,661.1
    3Q'07                 77       8,595.8
    4Q'07                 86      12,322.5
    1Q'08                 72       7,123.4
    2Q'08                 82       9,284.5
    3Q'08                 62       8,393.3
    4Q'08                 49       3,594.7
    1Q'09                 49       4,610.9
    2Q'09                 25       1,701.9

     Source: Thomson Reuters & National Venture Capital Association

"The slower venture fundraising activity is no surprise given the current environment," said Mark Heesen, president of the NVCA. "The final manifestations of the bubble burst combined with a troubled exit market make it a very difficult time to raise money. We believe that many venture firms are waiting until 2010 and beyond to go out to their limited partners who, in an improved market, will look more favorably upon the asset class vis-a-vis other alternatives. That said, there will be firms that will not be able to raise a follow-on fund and our industry is positioned to contract over the next five years through this type of attrition."

While the number of funds raised fell to a 13 year low, the relative number of new funds versus follow-on funds reached a four quarter high. There were eight new funds and 17 follow-on funds raised in the second quarter of 2009, a ratio of about 2-to-1 of follow-on to new funds. By comparison, just three new funds and 46 follow-on funds were raised in the first quarter, a ratio of over 15-to-1 of follow-on to new funds. A "new" fund is defined as the first fund at a newly established firm, although the general partner of that firm may have previous experience investing in venture capital.

    VC Funds: New vs. Follow-On

                No. of       No. of
                   New    Follow-on   Total

    2004            55          156     211
    2005            64          175     239
    2006            56          185     241
    2007            62          189     251
    2008            48          173     221
    2009            11           59      70
    2Q'07           17           69      86
    3Q'07           15           62      77
    4Q'07           27           59      86
    1Q'08           10           62      72
    2Q'08           23           59      82
    3Q'08           13           49      62
    4Q'08           12           37      49
    1Q'09            3           46      49
    2Q'09            8           17      25

    Source: Thomson Reuters & National Venture Capital Association

The largest fund raised in the second quarter was follow-on fund Domain Partners VIII, L.P. (early stage, $371.1 million) by firm Domain Associated Management.

About Thomson Reuters

Thomson Reuters is the world's leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world's most trusted news organization. With headquarters in New York and major operations in London and Eagan, Minnesota, Thomson Reuters employs more than 50,000 people in 93 countries. Thomson Reuters shares are listed on the New York Stock Exchange (NYSE: TRI); Toronto Stock Exchange (TSX: TRI); London Stock Exchange (LSE: TRIL); and Nasdaq (Nasdaq: TRIN). For more information, go to www.thomsonreuters.com.

About National Venture Capital Association

The National Venture Capital Association (NVCA) represents approximately 450 venture capital firms in the United States. NVCA's mission is to foster greater understanding of the importance of venture capital to the U.S. economy and support entrepreneurial activity and innovation. According to a 2009 Global Insight study, venture-backed companies accounted for 12.1 million jobs and $2.9 trillion in revenue in the United States in 2006. The NVCA represents the public policy interests of the venture capital community, strives to maintain high professional standards, provides reliable industry data, sponsors professional development, and facilitates interaction among its members. For more information about the NVCA, please visit www.nvca.org.

SOURCE  Thomson Reuters
    -0-                           07/13/2009
    /CONTACT:  Emily Mendell of NVCA, +1-610-565-3904, emendell@nvca.org; or
Janice Addams of Thomson Reuters, Public Relations, +1-646-223-6940,
janice.addams@thomsonreuters.com; or Sandy Anglin, Thomson Reuters, Research
Analyst, +1-646-223-6997, sandy.anglin@thomsonreuters.com/
    /Web Site:  http://www.thomsonreuters.com /
    (TRI TRIN TRIL.)

CO:  Thomson Reuters; National Venture Capital Association; NVCA
ST:  New York
IN:  FIN
SU:  VEN SVY

PR
-- NY44731 --
4731 07/13/2009 08:00 EDT http://www.prnewswire.com