The tough times for venture capitalists in the US persist.
The first three months of this year marked the slowest opening quarter to any year since 1993. The $3.6bn raised for new funds was down 31 per cent from the same time last year, and the 32 funds marked a 44 per cent decline, according to Thomson Reuters and the National Venture Capital Association (pdf).
The sluggish opening to the year is probably the result of the stubbornly closed public markets. “Many firms have been waiting until the exit market improves before embarking upon their fundraising efforts,” said NVCA president Mark Heesen. “This wait has been considerably longer than many firms anticipated.”