10-Year VC Returns Turn Negative

U.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.

Buyout funds continue to outpace VC funds, posting a 10-year return of 4%. Despite the weakening of 10-year results, VC and buyout funds overall generated returns that were better than the NASDAQ (-6.2%)  and the S&P 500 (-2.4%) through March 31.

The data from Thomson Reuters is somewhat in line (actually more positive) than results from NVCA and Cambridge Associates. In July, NVCA/Cambridge reported that 10-year horizon VC returns were -3.7%, compared to 2.3% for the DJIA and -6.3% for the NASDAQ.

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