The amount of capital going into U.S. venture capital (VC) funds was down 82 percent in the second quarter of 2009, the lowest level since the first quarter of 2003.

According to data released by the National Venture Capital Association (NCVA) the second quarter saw VC funds raise $1.7 billion, down from the $9.3 billion raised in the second quarter of 2008. This is also 63 percent less than the $4.6 billion raised in Q1 this year.

The number of venture funds raising capital also dropped during the second quarter – from 50 funds last year to just 25 this year, representing the lowest number of funds in 13 years.

The average amount of funds going in to each fund was $68 million, also lower than the average of $94 million in the last quarter.

Source: Erick Schonfeld, “The Squeeze Continues: Venture Fundraising Shrinks 82 Percent in Second Quarter,” TechCrunch, July 13, 2009

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