Venture capital (VC) companies have performed poorly in recent years, according to Cambridge Associates’ recently released statistics. Analysis by the consulting firm revealed that rates of return have dwindled substantially from the double-digit annual numbers they enjoyed in the 1990s. As of June 30, 2010, five-year returns to limited partners (LP) were merely 4.27 percent; 10-year returns were negative 4.15 percent.
Because most venture capitalists are wealthy, you shouldn’t worry that poor financial returns are imposing true hardship on them. But you should be concerned that their poor earnings are harming the ecosystem for developing high growth startup companies in the United States.
To read the full, original article click on this link: Are Venture Capitalists Making Money?
Author: Scott Shane
