Venture Capital
During 2011, venture capital commitments reached $33 billion (vs. $22 billion in 2009). For 2011, venture capital companies raised $10 billion through IPOs. Tech-focused vehicles accounted for 35% of the venture capital raised for 2011. There are approximately 140 venture capital funds.
For funds raised in 2000, the median performer’s annualized return was -3.3% while the top quartile returned 3.3% a year (source: Cambridge Associates). For funds raised in 2007, the median fund has returned 5.1%, versus 19.6% for the top quartile. Key to those high returns were investments like Facebook and LinkedIn. However, access to top funds is difficult. Overall, U.S. venture capital funds raised $16.2 billion over 135 funds in 2011, up 5% from 2010.