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U.S. venture fundraising about to top $40 bln, again

Another robust year of fundraising by the U.S.-based venture community has led firms to raise more than $37 billion year-to-date through mid-September, according to a Venture Capital Journal analysis of preliminary data from Thomson Reuters.

Q3 is not yet wrapped up, but so far the fundraising total is at about $10 billion for the three-month period, following $13.7 billion in commitments in Q2 and $13.9 billion in Q1, according to Thomson Reuters. VCJ has identified about $2.5 billion in recent fund commitments that are not included in the preliminary Q3 data from Thomson Reuters, so the final Q3 total should end up at about $13 billion.

And if LPs continue to pour money into U.S. funds at the same pace as they have all year, 2019 will certainly break the $50 billion ceiling again.

In 2018, the U.S. venture industry raised more than $50 billion of fresh capital, setting an 18-year record. In the peak dot-com boom year of 2000, $104 billion was raised, according to Thomson Reuters. A separate report by PitchBook in January pegged the 2018 U.S. fundraising total at closer to $56 billion.

So far in 2019, the year has seen new billion-dollar funds from Technology Crossover Ventures, Lightspeed Venture Partners, Andreessen Horowitz and Vivo Capital. A few firms, such as Accel, Lux Capital and Menlo Ventures, each raised multiple funds that totaled more than $1 billion when combined.

And firms that raised new funds of $800 million or slightly more include the Raine Group, Flagship Pioneering and Oak HC/FT. (see table below.)

Although the year-to-date tally is nearing $40 billion, it doesn’t include several recently closed funds or vehicles that are due to wrap up soon.

Funds to recently have reported a final close include DCVC, which today announced it wrapped up its largest fund to date with $725 million in commitments; Foundation Capital, which last week raised $350 million for its ninth fund; and Revolution Ventures has raised $215 million.

In addition, Afore Capital announced today in a Medium blog post it has raised $77 million for its second pre-seed fund.

Meanwhile, DCM Ventures is expected to go over target for its ninth fund, according to a regulatory filing. The DCM filing officially reports the firm has raised $710 million so far, but it says there is another $52 million in LP interests giving the fund more than $762 million in commitments.

Of course, a hefty addition to the fundraising total will come from New Enterprise Associates, which has been raising its 17th and largest fund since March, targeted at $3.6 billion. VCJ has reported on several public LPs to have recently announced commitments to the NEA fund. This includes the Texas County and District Retirement System, which agreed to invest $100 million to the multi-stage and sector agnostic mega fund.

In addition, Santa Monica, California-based March Capital Partners is seeking to raise $410 million for its third fund, according to a recent filing.

And Threshold Ventures, formerly named DFJ, is targeting $250 million for its third early-stage vehicle and could wrap that up soon, too.

Top U.S. based venture fundraisers (2019 year-to-date)

Fund  Firm  Amount raised in year ($M) Fund size ($M)
TCV X LP Technology Crossover Ventures $2,665.00 $3,160.00
Andreessen Horowitz LSV Fund I, L.P. Andreessen Horowitz $2,000.00 $2,000.00
Lightspeed Venture Partners Select Fund III LP Lightspeed Venture Partners $1,063.83 $2,113.83
Oak HC/FT Partners III LP Oak HC/FT Partners $800.00 $800.00
Third Rock Ventures V, LP Third Rock Ventures $770.00 $770.00
Andreessen Horowitz Fund VI, L.P. Andreessen Horowitz $750.00 $750.00
EW Healthcare Partners Fund 2 LP EW Healthcare Partners $746.33 $746.33
Flagship Pioneering Special Opportunities Fund II LP Flagship Pioneering $694.00 $824.00
Kleiner Perkins Caufield & Byers XVIII LLC Kleiner Perkins $600.00 $600.00
Vida Ventures II, LLC Vida Ventures $600.00 $600.00
Lux Capital Second Opportunity Fund Lux Capital $550.00 $550.00
Menlo Special Opportunities Fund II LP Menlo Ventures $526.75 $526.75
Accel XIV LP Accel $525.00 $525.00
Accel Leaders Fund II L.P. Accel $500.00 $500.00
Menlo Ventures Inflection Fund Menlo Ventures $500.00 $500.00
Eclipse Fund III, L.P. Eclipse Ventures $500.00 $500.00
Lux Capital Fund VI Lux Capital $500.00 $500.00
Source: Thomson Reuters.
Note: Data is preliminary through Sept. 17, 2019.