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Q3 2013 Venture Performance Update

// Wiley Becker - Guest Contributor

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February 5, 2014
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10 Year Venture Index Beats Public Indices
Venture Remains Competitive with Rising Public Markets
Recent Vintage Average Net IRRs Top 10% and Upper Quartile Nears 20%+

Q3 2013 Venture Performance Update Chart 1

Q3 2013 Venture Performance Update Chart 2

Cambridge Associates LLC U.S. Venture Capital Index®, the Performance Benchmark of the National Venture Capital Association (NVCA); Data as of 09/30/13; Average Net IRR and Net Multiple figures are the Arithmetic Mean, hence how the Average can be greater than the Top Quartile; Net Multiple is Total Value to Paid In Capital (TVPI); Vintage year funds formed since 2010 are too young to have produced meaningful returns 

The 10 year time horizon of the US Venture Capital Index ® by Cambridge Associates LLC continued its improvement in Q3 2013 to 8.58%, approximately one point higher than the three major public indices.  While shorter-term performance slightly lags the public indices, longer-term performance significantly exceeds the public markets.  As expected, the Late Stage US Venture Capital Index outperforms the Early Stage Index in the shorter hold periods, while the Early Stage Index outperforms over the longer time horizons.

Average Net IRRs and Net Investment Multiples continued to increase on a quarterly basis for the recent 2007-2010 vintages.  Additionally, the upper quartile threshold of Net IRRs remained over 17% for each of these vintages.

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