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”]