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$22.16 bln of venture capital raised by US VCs in 2005

US venture capital firms raised $22.16 bln in 2005, a 19% increase over the amount of funds raised in 2004, making it the largest fund-raising year since 2001, according to VentureOne.

US venture capital firms raised $22.16 bln in 2005, a 19% increase over the amount of funds raised in 2004, making it the largest fund-raising year since 2001, according to VentureOne. However, the number of funds that closed in 2005 (108) was eight fewer than closed in 2004. Q4 2005 accounted for 20 fund closings, raising $5.59 bln. While this is 12 fewer funds than closed in Q4 2004, it represents 11% more capital raised than Q4 2004. 28% of the funds that closed in 2005 were in the $250 mln to $499 mln range, compared to 20% in 2004. In addition, almost 8% of the funds that closed in 2005 were between $500 mln and $999 mln in size, the most funds of this size completed since 2001. Funds of less than $100 mln in size represented only 43% of the funds closed in 2005, the first time this percentage has dropped below 50% since at least 1992. In Q4 2005, the largest US fund raised was the $1.4 bln Technology Crossover Ventures VI fund. In addition, three other US funds raised were $500 mln or larger in Q4 2005.