We’ve said this before, but the money keeps cascading in.
U.S. private equity firms, which includes venture capital firms that invest in start-ups, continue to raise more money than ever before.
They’ve raised $172.2 billion in 253 funds so far this year through the close of the third quarter of 2006 — an increase of about 72 percent in capital from this point last year, according to Dow Jones.
The total this year has already exceeded the $162.5 billion raised in all of 2005. The year’s total is expected to easily exceed 2000, when a record $177.9 billion was raised. Private equity is a term that includes buyout and corporate finance funds, venture capital, mezzanine funds and funds-of-funds.
We should note that venture capital firms themselves are no where near raising the record levels they hit in 2000. But they are raising more than last year: They raised $21.8 billion so far in 2006, about 18 percent more than was raised at this point last year, the report said.
3 Comments
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Ved said:
Current growth is not bad and it appears that more money will be raised next year. But, hope it does not get out of hand and causes bubble 2.0 in 2008.
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Matt Marshall said:
Yes, and now we see a venture firm, Sevin Rosen Funds, break down and decide things are indeed getting out of hand. NYT has story today.
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Y K said:
Can’t blame the firms for raising money as much as they can in the current market which has now become a pissing contest. Of course, rather than a bubble 2.0, I’d be worried more about just an overall lack of quality deals with all this capital awash in the market.
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4:42 am
ColoradoStartups.com » Overheard said:
[...] VCs have raised $21.8 billion so far in 2006. [...]