Despite the relatively flat economy (due in part to higher oil prices), Red Herring reported today that VCs got a lot more money to play with in Q1 of this year versus a year ago (in fact, double of last year's Q1 figure of $2.67 billion in 49 funds).  The 2005 tally comes to 48 funds at a total of $5.33 billion.  On the private equity side, the numbers for Q1 2005 were an astounding 4 times higher than the same interval over last year.

Despite the positive raised capital numbers, there is still a lot of money staying on the sidelines, with more than $53.6 billion yet to be spent.  So how come VCs are raising money faster than they can spend?  Could it be their perception that there is a lack of startups with enough potential to justify VCs to invest in them?  Or that after the bubble of the early 2000's, VCs are trying to be more careful about their investments?  Maybe that will make an interesting question in the VC session I will be moderating tomorrow at VON Canada.