VC Fund Misses Money Target

For the first time that I have seen in a while a venture fund has closed with less capital than it expected. Leapfrog Ventures has apparently closed its second fund with $102.8-million, well under the $150-million that Venturewire says the fund was targeting last October.

The fund’s principals says there was lots of interest, but it was just taking too long:

“A lot of companies were interested, but their due diligence cycle would have taken us past our closing date on paper,” said Rip.

Rip said it would have been possible to put off the closing date of the fund, but it would have meant additional time and marketing expenses for a firm with only three fund managers.

That may very well be true, but it is at least an interesting data point during a period when every fund-closing in sight has been at target or above.