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10-Year VC Returns Turn NegativeU.S. VC funds posted their first negative 10-year returns in a decade, according to new data from Thomson Reuters. As of March 31, VC funds generated a -1.5% pooled horizon return. The results exclude VC valuations from fourth quarter 1999 (which was the height of the dotcom bubble). Prior to this, 1999’s quarterly valuations were the major reason VC 10-year returns were positive, Thomson Reuters said.
The Long and Winding RoadIt is becoming more common for the fund-raising process to take 18 months or more, as LPs become more demanding
- Cambridge Updates PE Performance Benchmarks
Yesterday we reported on updated VC benchmark data from Cambridge Associates and the NVCA. What we neglected to mention was that Cambridge also updated its non-VC private equity fund benchmarks (no NVCA participation, so no press release). The headline numbers are: 7.19% for 10-year, 10.35% for five-year and 22.35% for one-year. Those figures are described as "end-to-end pooled mean net period to limited partners." We also learn that mid-cap funds typically outperform small-cap, large-cap or mega-cap funds. View the benchmarks after the jump...
- Latest VC Performance Data is a Mixed Bag
The NVCA and Cambridge Associates today released new VC performance data (through March 31), showing improved short-term returns but continued weakening of 10-year returns. Five-year returns experienced a modest bump, after dropping the last time around. Overall, 10-year mean VC returns stand at -3.7%, compared to 2.3% for the DJIA and -6.3% for the Nasdaq over the same time period. Five-year returns for VC come in at 4.9%, compared to 3.3% for the DJIA and 3.7% for the Nasdaq. One-year returns (for whatever they’re worth) for VC was 6.5%, compared to 49.6% for the DJIA and 56.9% for the Nasdaq. You can download all the relevant data after the jump...
- peHUB Wire: Wednesday, July 28, 2010
Random Ramblings
- peHUB Wire: Wednesday, July 28, 2010
Random Ramblings
- LP corner, week of July 19, 2010
News briefs about CalPERS and Tennessee
- peHUB Wire: Friday, July 9, 2010
Random Ramblings
- peHUB Wire: Friday, July 9, 2010
Random Ramblings
- 3 Reasons To Downplay the VC Fundraising Increase
Dow Jones today published /76582/mixed-bag-for-first-half-fundraising/ VC fundraising data for the first half of 2010, showing a 13% bump over the first half of last year. This prompted headlines like: "VC Doesn't Look So Bad at the Half After All http://bit.ly/duNTnS " and story ledes like "There’s good news for venture fundraising this morning." http://techcrunch.com/2010/07/08/u-s-venture-capital-fundraising-up-13-percent-in-first-half-of-2010-to-7-5b/ I hate to piss all over the parade, but this data is hardly worth celebrating. Here are three reasons why: 1. Bigger fundraising totals do not necessarily translate into better returns. For example, the high-water mark for VC fundraising was set in 2000, when funds secured over $100 billion. Lots of money, but it's also one of the worst-ever vintage years for VC funds in terms of performance. Cambridge Associates puts the pooled mean https://www.cambridgeassociates.com/pdf/Venture%20Capital%20Index.pdf (net to LPs) at -1.26 percent. The only weaker vintage (five years or older) was 1999, which happens to have been the second-best VC fundraising year on record.