Venture Capital Fundraising Q1 05

Venture capital and private equity funds maintained a solid pace of fundraising in the first quarter of 2005. 48 venture funds raised $5.3 billion and 38 buyout/mezzanine funds raised $15.8 billion. While down slightly from previous quarters, fundraising was significantly higher than the first quarter of 2004. Follow-on funds accounted for over 80% of venture fundraising, indicating that established firms with strong track records are most successful at attracting investors. Mega funds dominated buyout fundraising, with the top 3 funds raising over $10 billion combined. Overall, fundraising activity remained healthy despite high demand, showing restraint by the industry.