Yesterday, Thomson Reuters and the National Venture Capital Association released the first quarter fundraising totals. In the release, they indicate that 58 funds raised $8.9 billion in the quarter. If this trend continues, then venture capital funds could raise nearly $40 billion in 2014, a very large number. What is more troubling to me is that with the recent growth of corporate venture capital groups, angel investors, incubators and crowdfunding, there will be much more than $40 billion invested in deals. This comes in a time when startups need less capital than ever to get started.
In my view, the news that venture capital funds raised $9 billion in the first quarter is concerning. While I still don't think we are in a bubble today, this news suggests that a bubble could be coming in the future.
Thomson Reuters / NVCA release:
My prior post: