VC Firms Are Raising A Lot Of Money To Invest In Startups

Andreessen Horowitz

Despite shaky returns on investments, a dismal economic outlook, and unemployment up, venture capital firms increased fundraising by 31%, according to a Dow Jones report.

The findings show that among a pool of 82 VC firms, they managed to raise $13 billion in the first half of 2012, which is up from $9.92 billion during the same period.

Just because they’re raising big funds doesn’t mean they’re investing big sums of money all at once. According to Dow Jones, VC firms are investing smaller amounts in startups. The report states that the amount of funding invested during the same period doubled from $1.3 billion to $3.1 billion. The number of VCs participating in seed funding also increased from 40 to 43.

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