Follow-up to yesterday's post about VC money in Silicon Valley. AltAssets:
US venture capitalists have yet to invest an estimated $53.6bn overhang of capital, which comes from funds raised since 1999, according to a new survey that analyses the current status of 1,129 funds raised since 1999.
About one-fifth of the funds raised in 2000, which was the largest fundraising year on record, has not been invested, but all of that capital is committed to follow-on investments in existing portfolio companies. A significantly higher percentage is yet to be invested from the funds raised between 2001 and 2004. Remaining unspent are about 33 per cent of the 2001 funds, 41 per cent of the 2002 funds, 64 per cent of the amount raised in 2003 and 85 per cent of the 2004 funds.
"The amount of funds available to support new investments indicates investors remain optimistic about the landscape for funding the innovative start-ups of tomorrow."
In 2004 venture capitalist funds raised $17.5bn, almost twice the 2003 amount.
Link: US venture capitalists have an estimated $53.6bn overhang of capital to invest
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