New Enterprise Associates (NEA), a US venture capital partnership, is understood to have reached a $1bn (€793m) at the first close for its eleventh fund, the largest fundraising of early stage venture capital in the US for two years.

The successful fundraising effort is a welcome shot in the arm for an industry which has suffered a painful downturn since the end of the technology boom in 2000 and sets the scene for what is expected to be a big fundraising year in 2004.