The NVCA and Cambridge Associates released venture performance data through the end of last year today, and it should no longer pain VCs or their LPs to read.
That’s the most generous thing to be said about it at this point.
Though the firms’ data shows that the asset class is now actually outperforming public market indices across some (very) long-term periods, LPs have still done poorly in recent years, particularly considering the hefty sums they pay out in management fees.
In venture, three-year-returns as of December 31 were 10 percent, for example. That’s fantastic compared with where three-year venture returns were at the end of 2010, at an ugly negative 0.2 percent. Still over the same three-year period ending December 31, returns for the DJIA, Nasdaq Composite, and the S&P 500 were 14.9 percent, 18.2 percent, and 14.1 percent, respectively. (Whoops.)
To read the full, original article click on this link: VC Performance Inching Back from the Brink, Slowly -peHUB
