For UTIMCO’s 2006 to 2014 early stage bets, emerging managers lead the returns

The University of Texas Investment Management Company has said it has had success with early stage, emerging managers, and that appears to be the case, according to a Venture Capital Journal analysis of the endowment’s performance of venture funds with vintages 2006 through 2014.

For the funds in the vintage years of 2006 to 2008, UTIMCO’s investment in Spark Capital‘s second fund produced the best results as measured by the internal rate of return of 51.62 percent. The fund was an early investor in Twitter, which went public in late 2013, and it was also a backer of Tumblr, a blogging platform which was acquired by Yahoo for $1.1 billion in 2013.

For the funds with 2009 to 2011 vintages, Union Square Ventures‘ first opportunity fund produced an IRR of 58.64 percent. The New York firm was a backer of Twitter and also invested in Zynga, a games company that went public in 2011.

Lastly, in the 2012 to 2014 timeframe, the endowment’s bet on True Ventures‘ fourth fund had the best IRR in that vintage. The fund’s IRR as of May 2019 was 31.84 percent, thanks to its investments in Ring, which was purchased by Amazon for $1 billion in 2018, and, a cloud security startup acquired by Palo Alto Networks for $300 million in 2018.

VCJ also reviewed funds added to UTIMCO’s portfolio over the last year. The endowment has made a first-time investment in Jazz Venture Partners, a new firm. Other funds added to UTIMCO’s portfolio were from firms that have received previous investments from the endowment, such as True Ventures, Alta Partners and GGV Capital.

To download the full version of this results click here: UTIMCO-venture-portfolio vintages-2006-to-2014.

2006 to 2008
Fund IRR (%)
Spark Capital II 51.62
Foundry Venture Capital 2007 42.91
ARCH Venture Fund VII 38.91
Morgenthaler Venture Partners IX 24.15
TCV VII 23.49
Union Square Ventures 2008 20.68
Sofinnova Venture Partners VII 14.23
Austin Ventures X 9.85
Polaris Ventures Partners V 7.58
Gobi Fund II 4.58
PTV Sciences II 4.05
Artiman Ventures II -0.38
2009 to 2011
Fund IRR (%)
Union Square Ventures Opportunity Fund 58.54
IA Ventures Strategies Fund I 52.78
Sante Health Ventures II 39.36
IA Venture Strategies Fund II 32.92
Union Square Ventures 2012 Fund 26.42
Sofinnova Venture Partners VIII 24.87
True Ventures III 11.25
Foundry Venture Capital 2010 10.25
Correlation Ventures 0.83
Correlation Ventures Executives Fund 0.77
Artiman Ventures III -3.10
Artiman Ventures Special Opportunities -11.75
2012 to 2014
Fund IRR (%)
True Ventures IV 31.84
GGV Capital V 29.62
ARCH Venture Fund VIII 29.24
Foundry Group Select Fund 23.14
Cendana Co-Investment Fund 22.44
Union Square Ventures 2014 19.06
Union Square Ventures Opportunity 2014 17.74
Foundry Venture Capital 2013 16.09
Upfront V 8.56
Techstars Ventures 2014 1.89
Mosaic Ventures I 0.61
PTV Special Opportunities I -27.36
Source: UTIMCO portfolio reports, May 2019. Source for fund type and size from Thomson Reuters.