Venture capital has been drying up as IPOs and mergers have slowed dramatically along with the recession.

Venture capital has been drying up as IPOs and mergers have slowed dramatically along with the recession.

Venture capital fundraising remains in the doldrums as just 17 venture capital funds raised $1.6 billion in the third quarter, according to a report issued Monday by Thomson Reuters and the National Venture Capital Association (NVCA).The paltry number of new venture funds in a quarter was the lowest since the third quarter of 1994 when 17 funds were also created. Venture capital has been drying up as the traditional ways for fund to exit — recovering gains through IPOs and mergers — have slowed dramatically along with the recession.

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