The National Venture Capital Association recently reported venture capital fundraising figures for the second quarter of 2013. As we have documented here in Startup Financing Report for months, the venture capital numbers are down significantly from the same period last year. According to the NVCA report, venture capital fundraising was down 54% from $6.3 billion in the second quarter of 2012 to $2.9 billion in
the second quarter of 2013. Our own Startup Financing Report shows an even steeper decline of 65% from $7.2 billion in the second quarter of 2012 to $2.5 billion in the second quarter of 2013. The differences are likely the result of differences in methodology, as well as slightly different underlying sets of funds.
Whether one believes the true decline from last year is 54% or 65%, it is clear that venture capital fundraising is in a severe downturn. As last week's Startup Financing Report shows, the three weeks since the end of the second quarter have shown no signs of a turnaround. It is likey that the next NVCA report will show a similar decline in the third quarter, but things can change fast.
The Startup Financing Report is published weekly each Monday on WITNESSETH: Law, Deals & Data. Check here each week to see timely venture capital numbers before the NVCA's quarterly report is released.
Comments