Tuesday, January 16, 2007

Venture-capital funding best in five years

California receives about 47% of all U.S. venture capital. So this is strong indicator for future job growth in the state and confidence in the economy........

From the Sacramento Business Journal

Venture-capital fund raising in the United States reached its highest level in five years in 2006, despite a fourth-quarter slowdown.

In 2006, 200 venture-capital funds raised a total of almost $28.6 billion, compared with the 214 funds that raised $28 billion in 2005, according to data released Tuesday by Thomson Financial and the
National Venture Capital Association.

The fourth quarter saw a considerable slowdown, though, with 37 venture-capital funds raising $2.83 billion, down from the $5.43 billion raised in 66 funds in the third quarter and the $13.8 billion raised by 66 funds in the second quarter.

The report didn't include breakdowns by regions or states.

NVCA President Mark Heesen said the decline in private-equity fund raising in the fourth quarter was expected. "On the venture side, we are coming to the end of the current fund-raising cycle as most firms are now turning their attention to investing the funds raised in the last three years," Heesen said.

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