Fundraising by venture capitalists increased slightly in the second quarter, suggesting that the industry remains an attractive alternative for institutional investors that have been battered by the recent turmoil in the stock and credit markets.

Venture capitalists, who contribute cash and expertise to start-ups in exchange for a share of ownership, raised $9.1bn from investors in the second quarter, according to figures published on Monday by Thomson Reuters and the National Venture Capital Association. That was up 3 per cent from $8.8bn raised in the second quarter of last year.