Venture capital fundraising in 2007 reached its highest level since 2001, with 235 funds raising $34.7 billion. This 9.4% increase from 2006 continued the trend of annual fundraising gains, driven by capital-intensive sectors like life sciences and clean technology. While approaching 2001 levels, the 2007 funds were more diversified across early, balanced, later, and expansion stages, versus the early focus in 2001. New funds accounted for 55 of the 235 total, with a ratio of follow-on to new funds of approximately 3-to-1.

1. Emily Mendell, NVCA, 610-565-3904, emendell@nvca.org
Matthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.com
Sandy Anglin, Thomson Financial, 646-822-7334, sandy.anglin@thomson.com
2007 VENTURE FUNDRAISING REACHES HIGHEST LEVEL SINCE 2001
Capital Intensive Investment Sectors Driving Accelerated Fundraising Pace
New York, January 14, 2008 – Two hundred and thirty-five venture capital firms raised $34.7 billion in
2007 according to Thomson Financial and the National Venture Capital Association (NVCA). The number
of funds raised in 2007 increased by a modest 2.6% from 2006 while dollar value increased by 9.4% from
full-year 2006. Additionally, 2007 fundraising dollars reached the highest level seen since 2001 when
venture capitalists raised $38.8 billion from 318 funds.
Fundraising by Venture Funds, 2002-2007*
Venture Capital
Number of Venture
Year/Quarter Funds Capital ($M)
2002 179 3,936.9
2003 152 10,606.1
2004 208 19,057.6
2005 228 28,282.6
2006 229 31,698.1
2007 235 34,675.9
4Q'05 83 9,276.2
1Q'06 75 6,544.5
2Q'06 77 14,185.5
3Q'06 67 5,375.3
4Q'06 65 5,592.8
1Q'07 80 5,754.2
2Q'07 85 9,141.8
3Q'07 77 8,763.7
4Q'07 63 11,016.2
Source: Thomson Financial & National Venture
Capital Association
*These figures take into account the subtractive
effect of downsized funds
“The consistent and consecutive annual increases in venture capital fund levels reflect both an acceleration
of the fundraising cycle as well as an increased need for capital within certain investment sectors,” said
Mark Heesen, president of the NVCA. “Venture firms are investing in many capital intensive industries
such as life sciences and clean technology where the dollars required and time spent with the companies are
both very high. As firms deploy capital faster they will have to go back out to the market sooner or raise

2. larger funds. Still, on the positive side, we are nowhere near the unsustainable fundraising levels of the
1999 to 2001 period when the industry raised more than $200 billion.”
In 2007, 112 early stage focused funds raised $9.7 billion, sixty-three balanced stage focused funds raised
$10.6 billion, twenty-four later stage focused funds raised $7.2 billion, and twenty-two expansion focused
funds raised $4.8 billion.
“While dollars raised in 2007 approached 2001 levels, the composition of these dollars based on fund stage
focus stands in stark contrast to the composition seen in 2001,” said Alex Tan, global manager for Private
Equity Content Operations at Thomson Financial. “Today’s composition consists of a broad diversification
across early, balanced, later, and expansion focused funds, compared to the beginning of the decade when
funds were focused almost exclusively on the early and balanced stages.”
VC Funds: New vs. Follow-On
No. of No. of
New Follow-on Total
2002 22 157 179
2003 38 114 152
2004 51 157 208
2005 58 170 228
2006 46 183 229
2007 55 180 235
4Q'05 26 57 83
1Q'06 19 56 75
2Q'06 12 65 77
3Q'06 12 55 67
4Q'06 15 50 65
1Q'07 21 59 80
2Q'07 17 68 85
4Q'07 15 62 77
4Q'07 16 47 63
Source: Thomson Financial & National Venture
Capital Association
The ratio of follow-on to new funds was approximately 3-to-1 in 2007, compared to 2006 when the ratio
was approximately 4-to-1. Fifty-five new funds were raised in 2007 compared to 180 follow-on entities.
The largest funds raised in the year were Technology Crossover Ventures VII, L.P. (later stage; $3.0
billion), Bessemer Venture Partners VII, L.P. (balanced stage, $1.3 billion), and Vector Capital IV, L.P.
(expansion stage; $1.2 billion).
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3. The National Venture Capital Association (NVCA) represents approximately 480 venture capital and
private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital
to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2006 Global
Insight study, venture-backed companies accounted for 10 million jobs and $2.1 trillion in revenue in the
United States in 2005. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data, sponsors professional
development, and facilitates interaction among its members. For more information about the NVCA, please
visit www.nvca.org.