U.S. Venture Firms Raise $4.39 Billion in Third Quarter

Reuters

U.S. venture firms raised $4.39 billion last quarter, the smallest amount in two years, but still leaving the industry on track for one of the best fundraising years since the 2008 financial crisis.

The National Venture Capital Association said 53 funds raised the cash, down from $6.51 billion a year ago and from $10.83 billion from the second quarter.

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The numbers, based on Thomson Reuters data, indicate that venture firms may have taken full fundraising advantage in recent quarters of a more favorable attitude among investors to venture capital. Blockbuster IPOs and acquisition deals for many venture-backed companies have helped drive strong returns at some firms.

So far this year, the industry has raised $22.76 billion, less than the full-year total of $30.88 billion in 2014 but more than any other year since 2008.

Deerfield Healthcare Innovations of New York raised the biggest fund of the quarter, a $550 million vehicle, followed by Silversmith Capital Partners of Boston with a $460 million inaugural fund.

San Francisco-based Foresite Capital raised $450 million and Boulder, Colo.-based Foundry Group raised $225 million.

(Reporting by Sarah McBride; Editing by Bernard Orr)