Venture fundraising slows to four-year low in Q3

Venture fundraising slowed to a four-year low in the third quarter, reflecting a sharp pullback from earlier this year and last year, when money flowed into firm coffers.

Forty-seven funds raised more than $4.4 billion during Q3, according to preliminary data from Thomson Reuters. That’s a stark retreat from $12.8 billion in the second quarter, or 66 percent less, when 84 funds collected capital, the data show.

It is also a pullback from the third quarter a year ago, when $9.8 billion came into the business. The recently ended Q3 was the slowest quarter for fundraising since mid-2013.

Still, overall fundraising in 2017 remains healthy. Through nine months, more than $23 billion has been raised, compared with $42.1 billion in all of 2016. A solid fourth quarter could lift the year close to the $31 billion of 2015.

The largest fund raised during the third quarter period was IVP‘s 16th fund, which closed at $1.5 billion. Canaan Partners raised $800 million and Lightstone Ventures collected $250 million.

Costanoa Ventures, Clarus Ventures and OrbiMed Advisors also brought in new money.

Slightly more than 40 percent of the quarter’s capital will target later-stage deals while a third of it will seek early-stage opportunities, the data show.

Download Data: U.S.-based venture fundraising, Q3 2017

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