[Slashdot] - VC Firms Raised $21 Billion Last Quarter Despite Pandemic Chaos

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The spreading coronavirus pandemic has slammed tech startups, forcing dozens to shed thousands of jobs. But so far, the venture capitalists that fund them appear to be doing alright, according to a new report -- though some funds are faring better than others. From a report: In the first quarter of this year, 62 venture capital funds raised a total of $21 billion in the U.S., according to data gathered by PitchBook and the National Venture Capital Association. That cash puts them in a strong position as the economy weakens: In 2019, firms raised $51 billion for the full year. As an added buffer, VCs reported a total of $121 billion in committed but unspent capital as of the middle of 2019, the latest numbers available, according to the NVCA. But while the biggest firms have announced large new funds, first-time VCs have found themselves in a more difficult position. Just nine funds launched by managers hanging out their own shingles raised $1.1 billion last quarter, the report said. That's on track to fall short of the 49 or more that set up shop in each of the last three years. New funds also made up a smaller chunk of total VC funding raised so far this year than in years past. As shelter-in-place mandates continue to dictate business practices, part of the problem at the end of last quarter and at least the start of this one is that first-time fund managers aren't able to travel or meet investors as they seek to raise money. "Name-brand VC firms may be able to streamline the fundraising process," wrote the authors of the report, and limited partner investors might be more inclined to invest in a firm that's already famous, without first meeting the general partners face to face.

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