On his blog, Michael Greeley recently wrote “My guess is the VC industry will have raised between $10 to $12 billion in 2010 ($28 billion was raised in 2008). From 2008 through 2011 we will have witnessed the VC industry being cut in half.” Ouch.
Less money raised means fewer deals will be done. In addition, longer times-to-exit force VC’s to reserve larger portions of their funds for each portfolio company. For medical device startups, the fundraising environment is as rough as it has ever been.
All the more reason to raise money from VC’s that have relatively new funds. These new funds have longer time horizons, and don’t have to support past (aging) VC firm investments. How do you find these funds?
Just look here. I collect life science VC fundraising news, and provide an updated list each quarter. Click here to download the latest list of VC fundraising activities, through Q4 2010. Disclaimer: this list is likely not comprehensive, as firms don’t always announce new funds. Leave a comment if you know a fund raise that I missed in this table, and I’ll update the table.
- Where do VCs get their money from? (theequitykicker.com)
- VC Funds Caught Between a Rock and a Hard Place (gigaom.com)