Fewer Venture Firms Are Raising Larger Funding Rounds

Fewer venture capital firms raised larger rounds of funding in the first quarter compared with the same time frame in 2006 and 2007, the National Venture Capital Association and Thomson financial reported Monday.

A total of 57 firms raised $6.26 billion compared with 83 funds and $6.21 billion in 2007 and 75 funds and $6.59 billion in 2006.

Mark Heesen, the NVCA president and a keynote speaker later this week at the Council for Entrepreneurial Development’s annual venture conference, said the need for capital is helping drive up the overall size of funds.

“The interest by venture capitalists in capital intensive industries such as life sciences and clean technologies will likely drive fund sizes upward for the foreseeable future,” Heesen said.