Venture capital fundraising drops 25 percent

“Venture capital fundraising in the first quarter was at the lowest levels for the first three months of the year since the first quarter of 2004. Venture firms raised $4.9 billion for 56 funds, according to figures released Monday by Thomson Financial and the National Venture Capital Association. ‘These lower fundraising levels relative to recent quarters are expected to remain steady in 2007 as many firms recently closed funds in the 2004-2006 cycle,’ said Mark Heesen, president of the NVCA. He sees some firms raising money in the ‘off-cycle,’ keeping quarterly fundraising in the $4 billion to $5 billion range.”