Tuesday, October 13, 2009

"No Texas-based venture capital funds raised money in the third quarter"

Wow! From the Dallas Morning News:

Funds seeking capital for start-ups and new businesses are struggling to attract investors

No Texas-based venture capital funds raised money in the third quarter, signifying the continuing difficulties for the industry and entrepreneurs who depend on funding in a soft economy.

The last Texas firm to raise money was Houston-based DFJ Mercury, which attracted $10 million in June, according to the National Venture Capital Association.

Investors, such as wealthy individuals and pension funds, have been wary of committing to venture funds as they've watched their stock holdings plunge during the recession, and their economic outlook remains uncertain.

Nationally, venture capital fundraising fell to its lowest point in six years with 17 funds raising $1.56 billion in the third quarter, according to a report released Monday by NVCA and Thomson Reuters. The dollar figure was the lowest since $938 million in the first quarter of 2003, and the number of funds was the fewest since third quarter 1994....MORE