Only 40 venture capital funds raised money in the first quarter of 2009 — the smallest number since the third quarter of 2003.

But the $4.3 billion raised by those firms represented a 23 percent increase from the last quarter of 2008, according to Thomson Reuters and the National Venture Capital Association.

The numbers demonstrate that the majority of venture firms are not actively fundraising, but that firms with solid track records continue to be able to secure sizable commitments, NVCA President Mark Heesen said in a press release.

At the current pace, venture capital funds are on track to raise about $17 billion this year — or nearly $20 billion less than the record $35.6 billion raised by 249 funds in 2007.

Venture capital funds have backed many real estate start-ups, including Redfin, ZipRealty, Zillow, Trulia and ActiveRain. executive Alfred Lin, who will speak at the Real Estate Connect conference in San Francisco in August, is a co-founder of the venture capital firm Venture Frogs, which has invested in Ask Jeeves, Tellme Networks and Zappos (see story).


What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription