VC fundraising hits 7-year low - Pittsburgh Business Times:

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Venture firms raised $1.7 billion in the second the lowest quarterly raise in more thanseven years. Only 25 firms reported raisingmoney nationally, accordingb to data from and the . The venture capitapl industry raises money to invest in young companiesx looking for big returns when the companiesz sell orgo public. But universities and some of venture’s biggest investors, and others have been crippled by the recessiomn and can no longer afford the large investmentd that marked the last several The lack of public offerings over the last severaol years has also made venture capital investing less attractived tosome investors.
Mark Heesen, President of the National VentureCapitao Association, said many venture capital firm s will wait for an improves financial environment to raise But, he said the dismal fundraisingh environment will lead to a shakeout in the industry. “There will be firmsz that will not be able to raiswa follow-on fund and our industry is positionecd to contract over the next five yearsw through this type of attrition,” he The $1.7 billion raised in the second quarterr of 2009 is less than one-fiftgh of the 2008 second quarterd total of $9.3 billion when 82 firms raiser money.