1. Emily Mendell, NVCA, 610-565-3904, emendell@nvca.org
Matthew Toole, Thomson Financial, 646-822-7560, matthew.toole@thomson.com
Sandy Anglin, Thomson Financial, 646-822-7334, sandy.anglin@thomson.com
VENTURE CAPITAL FUNDRAISING ACTIVITY SLOWS IN 3Q 2007
Number of Firms Raising Money at Lowest Level Since 2001; Most Funds Raised in Quarter Were
Early Stage
New York, October 15, 2007 – Fifty-nine venture capital firms raised $6.0 billion dollars in the third
quarter of 2007 according to Thomson Financial and the National Venture Capital Association (NVCA).
This quarter’s figures represented a decline in the number of funds and dollars raised from the second
quarter of 2007 when 83 funds raised $9.0 billion. In the first three quarters of 2007, venture capital firms
raised $20.7 billion or approximately 79 percent of the volume raised in the same period of 2006.
Fundraising by Venture Funds, 2002-3Q 2007*
Venture Capital
Number of Venture
Year/Quarter Funds Capital ($M)
2002 175 3,774.0
2003 151 10,640.9
2004 207 19,023.4
2005 227 28,284.0
2006 229 31,693.6
2007 YTD 182 20,669.0
3Q'05 63 5,563.5
4Q'05 85 9,347.8
1Q'06 76 6,667.5
2Q'06 75 14,120.5
3Q'06 68 5,484.7
4Q'06 66 5,420.9
1Q'07 78 5,718.3
2Q'07 83 8,956.4
3Q'07 59 5,994.3
Source: Thomson Venture Economics & National
Venture Capital Association
*These figures take into account the subtractive
effect of downsized funds
“We expect the number of venture capital firms raising funds to remain very stable and perhaps even
decline during the next year as these venture capitalists focus on deploying the dollars that have recently
been raised,” said Mark Heesen, president of the NVCA. “The high percentage of early and balanced stage
funds raised suggests a continued venture capital focus on growing young, start-up companies from the
ground up.”

2. In the third quarter, twenty-six early stage focused funds raised $903.3 million, sixteen balanced stage
focused funds raised $3350.7 million, and nine expansion stage focused funds raised $613.2 million. The
largest funds raised in the early, balanced, and later stages were Technology Partners Fund VII, LP ($300
million), Battery Ventures VIII, LP ($750 million), and New River Management V, LP ($250 million),
respectively.
VC Funds: New vs. Follow-On
No. of
No. of Follow-
on Total
New
2002 58 117 175
2003 50 101 151
2004 56 151 207
2005 57 170 227
2006 49 180 229
2007 YTD 40 142 182
3Q'05 12 51 63
4Q'05 26 59 85
1Q'06 20 56 76
2Q'06 13 62 75
3Q'06 14 54 68
4Q'06 15 51 66
1Q'07 20 58 78
2Q'07 16 67 83
3Q'07 8 51 59
Source: Thomson Venture Economics &
National Venture Capital Association
While the spread between follow-on funds and first-time funds decreased in the third quarter, the ratio of
follow-on to new offerings exceeded 6 to 1. Only eight new funds were raised in the quarter, compared to
fifty-one follow-on entities. This represents the smallest number of new funds raised since the second
quarter of 1995; however, the total funds raised by new funds totaled $553.7 million, exceeding the dollar
volume in five of the last twelve quarters.
The largest fund raised in the quarter was the Battery Ventures VIII, LP fund at $750 million followed by
the Bessemer Venture Partners VII, LP fund and the MDV IX, LP fund at $625 million and $580 million
dollar raised, respectively, in the third quarter.
Note: Beginning in the first quarter of 2007, buyout and mezzanine fundraising will be distributed in a
separate release prepared by Thomson Financial.
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industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more
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information, software tools and applications to professionals in the fields of law, tax, accounting, financial
services, scientific research and healthcare. The Corporation's common shares are listed on the New York
and Toronto stock exchanges (NYSE: TOC; TSX: TOC).
The National Venture Capital Association (NVCA) represents approximately 480 venture capital and
private equity firms. NVCA's mission is to foster greater understanding of the importance of venture capital

3. to the U.S. economy, and support entrepreneurial activity and innovation. According to a 2006 Global
Insight study, venture-backed companies accounted for 10 million jobs and $2.1 trillion in revenue in the
United States in 2005. The NVCA represents the public policy interests of the venture capital community,
strives to maintain high professional standards, provides reliable industry data, sponsors professional
development, and facilitates interaction among its members. For more information about the NVCA, please
visit www.nvca.org.