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 Evident.io, 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|
|Spark Capital II||51.62|
|Foundry Venture Capital 2007||42.91|
|ARCH Venture Fund VII||38.91|
|Morgenthaler Venture Partners IX||24.15|
|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|
|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 Executives Fund||0.77|
|Artiman Ventures III||-3.10|
|Artiman Ventures Special Opportunities||-11.75|
|2012 to 2014|
|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|
|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.