Funds in registration: Q2 fundraising slows, but plenty of firms continue seeking capital

SoftTech VC recently wrapped up $150 million for two new funds, including $100 million for its fifth seed-stage venture fund and $50 million for its first opportunity fund.

In his blog post announcing the funds, founder and Managing Partner Jeff Clavier said that when he told his limited partners last year that the firm planned to raise more capital, they advised him to go out early to do it quickly.

“We were warned that a large number of managers were planning to go to market in the first half of 2016,” Clavier wrote. “That’s essentially what we did.”

The numbers certainly bear out the LP warning on fundraising in early 2016.

In the first quarter, more than 60 U.S.-based firms raised $13.8 billion, according to data from Thomson Reuters, the most in nearly 10 years since firms raised $14.38 billion in second-quarter 2006.

Preliminary Q2 numbers show quite a drop off. With three weeks to go in Q2, 47 firms have so far raised about $4.4 billion. This includes the announcements in the past week that Longitude Capital raised $525 million for its third fund, Sherpa Capital closed on $470 million for two funds and SoftTech sealed its fundraising commitments.

Although SoftTech is no longer in fundraising mode, plenty of other firms could be closing soon.

This includes Kleiner Perkins Caufield & Byers, which is said to be raising close to $1.3 billion combined for two new funds, according to recent reports.

Also in registration is Spark Capital, which is seeking to raise $500 million for the Boston firm’s second growth fund.

Another large fund in registration is SV Life Sciences’ sixth, which is targeted at $400 million. The target of Fund VI is about 24 percent less than the fifth fund, which closed in 2010 with $523.5 million in commitments. 

Photo courtesy of ©iStock/alphaspirit

Downloadable Data:Funds in registration as of June 9, 2016

Downloadable Data: U.S. venture fundraising by month