Slideshow: VC Returns Show Signs of a Rebound

Venture returns are benefiting from an improving M&A market and an IPO window that cracked opened during the middle of last year.

But where from here? This year’s accelerating public offering market for technology and Internet startups will likely provide a boost.

This will be especially true for short-term returns. One-year and five-year durations are already benefiting (see the following charts). Twenty-year venture capital returns also may turn higher.

Still, the key 10-year time period, which no longer includes the bubble years of the late 1990s, remains a laggard. There are suggestions that the 10-year payback will show improvement as the year rolls along. Unfortunately, it has to climb out of quite a hole.

Here is a look at the current state of industry returns using fourth-quarter benchmark data going back seven years. Be sure to view the two trend analysis slides at the end. (If you want to enlarge a chart, just click on it.)


[slide title=”One-Year Venture Returns”]

[slide title=”Three-Year Venture Returns”]

[slide title=”Five-Year Venture Returns”]

[slide title=”Ten-Year Venture Returns”]

[slide title=”Twenty-Year Venture Returns”]

[slide title=”One-, Five- and 20-Year Trends”]

[slide title=”Three- and 10-Year Trends”]