[qi:101] Venture capital firms convinced limited partners to hand over $1.7 billion to 25 funds during the second quarter of this year — the smallest dollar amount raised by VCs in a single quarter since 2003, according to data released today by the National Venture Capital Association. It also marked the smallest number of new venture funds formed in a quarterly period since 1996. OK, so fundraising by venture firms is down, which makes sense given the lousy exit environments, stagnant returns and the worries that the VC model is broken. Limited partners also have less money to allocate to venture capital as they see their own portfolios take a hit. So in looking at this data I’m wondering if we’re merely looking at the actions of cash-strapped limited partners or a realignment in the venture industry.