It’s finally happened: the venture industry’s 10-year index has
turned negative.
Not that it’s a surprise to anyone – this has been predicted for a while – but it is a milestone for an industry that has long boasted of outstanding returns that make a lack of liquidity worthwhile.
Cambridge Associates and the National Venture Capital Association released the data today, pegging 10-year venture capital returns at minus-0.9% as of December. (It takes a while to calculate these things.) The index was 8.4% for the ten years ending last September and 35% for the decade ending Dec. 31, 2008, courtesy of the lingering effects of the tech bubble. Those eye-popping returns have now largely rolled off the ten-year spreadsheet. Nine-year returns are even worse, at minus-3.7%.
To read the full, original article click on this link: Despite Short-Term Improvement, VC 10-Year Index Goes Negative - Venture Capital Dispatch - WSJ
Author: Russell Garland
