For the last three years, venture capital available for investment has been on the rise. ‘Dry powder’, as it’s called, reached $157 bn at the end of 2009, $160 bn at the end of 2010 and now sits at a hefty $167 bn. That’s a 6.4 per cent increase in cash on the sidelines in less than two years.
Here’s what you need to know:
1. Almost half the dry powder is in North America – $75 bn so far. Yet, this is down from its December 2007 peak by around $17 bn, according to research firm Preqin.
2. Venture capital funds focused on investments in Europe are sitting on only $27 bn in dry powder – which is consistent with the range of $26 bn to $28 bn for the region going back to the end of 2007.
3. In Asia and the rest of the world, there’s a hefty $65 bn in venture capital sitting on the sidelines – the highest level reached since 2003.