As per the media reports, the fundraising activity among venture capitalists has dropped for the second continuous quarter. Thus, it touched its lowest level of money invested since 2003 and the fewest funds raising money since 1994.

The National Venture Capital Association and financial research firm Thomson Reuters says that nearly $1.6 billion was raised by venture capitalists for just 17 funds in the third quarter. This compared to the $8.5 billion they raised for 63 funds in the third quarter last year. 

The present Q3 is similar to the third quarter of 1994, when the equal numbers of funds were strengthened with additional funding from venture capital firm's limited partners.

It should be noted that the freshest $1.6 billion infusion of capital reflects the smallest dollar amount raised since the first quarter of 2003 when just $938 million was raised.
A few partners are still waiting to commit more money to venture capitalists, in spite of some anecdotal evidence that the pace of fundraising is picking up with more firms formally seeking new funding.  

Mark Heesen, president of Arlington-based National Venture Capital Association said, "Many limited partners are still determining their long term strategies in wake of the past year's financial crisis and that slows the process down considerably." 

The follow-on fund raised by Khosla Ventures III was the largest  fund raised in the third quarter, as it raised $750 million for partners at Menlo Park, California-based Khosla Ventures to invest in early stage companies.

After this, followed the Draper Fisher Jurvetson X, L.P. located at Menlo Park. It was able to raise $196 million in fund commitments during the third quarter of 2009.