US venture capitalists have yet to invest an estimated $53.6 billion overhang of capital, which comes from funds raised since 1999, accordin...

US venture capitalists have yet to invest an estimated $53.6 billion overhang of capital, which comes from funds raised since 1999, according to a new survey by VentureOne, a research specialist. About one-fifth of the funds raised in 2000, which was the largest fundraising year on record, has not been invested, but all of that capital is committed to follow-on investments in existing portfolio companies. The research analyses the current status of 1,129 funds raised since 1999. The analysis only included funds raised from US-headquartered venture capital and corporate investors. A significantly higher percentage is yet to be invested from the funds raised between 2001 and 2004. Remaining unspent are about 33 per cent of the 2001 funds, 41 per cent of the 2002 funds, 64 per cent of the amount raised in 2003 and 85 per cent of the 2004 funds. John Gabbert, vice president of worldwide research for VentureOne, said in a statement: “As year 2000 was a record fundraising year, with $82.6bn committed, it is perhaps not surprising that 20 per cent of it remains to be invested, given the slow down in the rate of investment since those funds were raised. “The fact that the capital is intended for existing portfolio companies bodes well for the nearly 5,500 private companies that were funded over the same period, many of which are still seeking follow-on investments to see them through to eventual exits,” Mr Gabbert added. In 2004 venture capitalist funds raised $17.5 billion, almost twice the 2003 amount.