Monday, November 01, 2004

Venture capitalists accelerate fund-raising in third quarter

From silliconvalley.com:

Venture capitalists raised $5.5 billion for future investments during the third quarter, continuing a recent upturn that reflects renewed optimism about the financial future for fledgling companies.

The amount of venture capital raised from investors during the three months ended in September more than doubled the $2 billion collected during the same time last year, according to statistics released Monday. The third-quarter volume also marked a 78 percent increase from the $3.1 billion raised during the second quarter.

The data, compiled by the National Venture Capital Association and Thomson Venture Economics, offer the latest signs that venture capital investment is ready to blossom again after several years of listlessness brought on by the dot-com bust.

Through the first nine months of the year, venture capitalists have raised $11.2 billion, already surpassing the $10.5 billion that the industry took in during all of 2003.

Venture capitalists also are on a pace to invest more money than they did last year.