Venture capital fundraising for early stage funds doubled in the first half of the year to $3 billion compared with the same period last year, according to a report by Dow Jones.
Among the firms that have raised funds were Felicis Ventures, a well-respected early stage investment group with a new $70 million fund targeting bioinformatics, and other sectors.
Healthcare IT companies are likely to benefit from the increase as healthcare facilities shift to electronic medical records.
The bulk of venture capital fundraising in the second quarter was done by the fewest number of funds in nearly three years, according to statistics from the National Venture Capital Association and Thompson Reuters.
About 38 U.S. venture capital funds raised nearly $6 billion during the quarter, a 12 percent increase in fundraising but by 11 fewer funds compared with the first quarter.
The top five funds accounted for nearly 80 percent of the money raised, according to the data. Mark Heesen, the president of the National Venture Capital Association, likened it to a barbell with the larger funds on one side and the smaller ones on the other.
With the Affordable Care Act ruled constitutional by the U.S. Supreme Court last month, the second half of the year could mean more and larger healthcare funds. Frazier Healthcare Ventures in Seattle, Washington, is raising a new fund of up to $400 million, its first new fund since 2007.
By Stephanie Baum
Stephanie Baum is the East Coast Innovation Reporter for MedCityNews.com. She enjoys covering healthcare startups across health IT, drug development and medical devices and innovations deployed to improve medical care. She graduated from Franklin & Marshall College in Pennsylvania and has worked across radio, print and video. She's written for The Christian Science Monitor, Dow Jones & Co. and United Business Media.Visit website | More posts by Author
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