US VC fund-raising down 71% in Q4

By January 20, 2009Venture Capital

As reported on Forbes US VCs raised $3.4bn in Q4 2008 – down from $11.7bn in the year ago period.

Many commentators, myself included, have been predicting a shake out in US venture capital, and now we see it starting.  As Peter Rip has argued this is healthy creative-destruction.

Overall I remain sanguine on the medium term prospects for venture in the US and Europe – the economy needs innovation and as we all know there are a lot of great companies out there that either need or could benefit from investment.

That said, some of the comments on my post last week Some challenges facing the venture industry have got me thinking about how we could get some other models to work in this space.  More of which anon.