Venture Capital Fundraising Picks Up In Fourth Quarter After Two Dormant Years

Venture capital fundraising increased in the fourth quarter of 2003, with 43 funds raising $5.2 billion. For the full year 2003, 113 funds raised $10.8 billion, similar to the level seen in 1995. This uptick comes after two slow years for fundraising as funds invested previously raised capital. Buyout and mezzanine funds also saw increased fundraising, with 20 funds raising $13.1 billion in the fourth quarter, compared to $4.7 billion the previous quarter. The majority of raised funds were follow-on funds for firms with proven track records.