VC Fundraising totals for Q3 2012 have been released ( www.nvca.org ) and it continues several trends we have been observing for a couple years. Big funds are capturing the greatest share of funding and new funds are tiny. In fact, while NVCA reports 16 “new” funds, their average size was just $9M and half were less than $2.5M. Yes, that’s right, we did not slip a digit!
Entrepreneuers need to take these new realities into consideration when planning their financing strategies. You can go small or go big, but being in between ($2-10M of capital) is a very difficult place to be.
Michael A. Greeley of Flybridge Capital has written a great analysis if you want to read more: click here