Venture capital is already having a big year


US venture capital firms continued their aggressive fundraising pace during the second quarter — further evidence of a major rebound in the VC industry this year from the very slow 2013.

VC firms raised $7.4 billion during the second quarter, according to Thomson Reuters and the National Venture Capital Association. Taken together with the strong fundraising of the first quarter, US venture firms have now raised nearly as much during the first half of the year as they did during all of 2013 — $16.5 billion so far this year, compared to a total of $17.1 billion last year.

In May I looked at some of the reasons for the rebound in VC fundraising — in particular, the heating up of the technology industry:

The increased enthusiasm by investors in venture capital funds, which include university endowments and public pension funds, results from a confluence of factors: multiple billion-dollar valuations for privately-held tech companies such as Airbnb, Uber, and Dropbox, huge payouts from big acquisitions such as Facebook’s $19 billion deal for WhatsApp, and the stock market performance of venture-funded tech firms that went public, such as LinkedIn Corp. and Workday Inc.

Three Boston-area VC firms have raised a combined $1.6 billion in the past two months — Spark Capital, Bain Capital Ventures, and Charles River Ventures.

Image of businessman with magnet via Shutterstock.

Kyle Alspach has worked in journalism in Massachusetts since 2005 and was one of the original staff writers at BetaBoston.
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