ALJA Still Assured As Venture Capital Industry Raises $2.7 Billion in Q2 2011
ALJA Thinks that the fact that the number of firms raising money successfully remains at such low levels confirms an ongoing contraction of the venture capital industry, which will serve well those funds that can obtain commitments, but that group is becoming more and more narrow.
- (1888PressRelease) July 29, 2011 - Thirty-seven studied venture capital funds raised $2.7 billion in the second quarter of 2011. This level marks a 28 percent increase by dollar commitments, but a 23 percent decline by number of funds compared to the second quarter of 2010, which saw 48 funds raise $2.1 billion during the period. US venture capital fundraising during the first half of 2011 totaled $10.4 billion from 76 funds, a 70% increase by dollars compared to the first half of 2010.
ALJA Thinks that the fact that the number of firms raising money successfully remains at such low levels confirms an ongoing contraction of the venture capital industry, which will serve well those funds that can obtain commitments, but that group is becoming more and more narrow. While a smaller venture industry will intuitively produce higher returns, it is critical that the mix of funds remain geographically diverse and cover a broad base of industries if we expect to contribute to economic growth and innovation at the levels we have historically. For that reason ALJA would like to see more funds raise money in the second half of the year.
There were 24 follow-on funds and 13 new funds raised in the second quarter of 2011, a ratio of 1.8-to-1 of follow-on to new funds. A "new" fund is defined as the first fund at a newly established firm, although the general partner of that firm may have previous experience investing in venture capital. Second quarter 2011 venture capital fundraising was bolstered by two fund commitments.
:About ALJA (Anderson, Lloyd, Jones & Associates):
Anderson, Lloyd, Jones & Associates (ALJA) is a venture capital and management consulting firm. We invest in and provide management consulting services (including investor relations services) to early stage emerging growth companies and to microcap and smallcap public companies. We aim to form a close partnership with a company, developing relationships with management, investors and shareholders. We inform the investment community about a company, provide a management consulting to grow the business, and often take an equity stake in companies we assist.
:Press Info:
Kyo Machida
ALJA International Relations Manager
kyo ( @ ) alja dot com
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