VC performance dips in second quarter

Venture capital fund performance pulled back in the second quarter with late- and expansion-stage returns falling the farthest.

Overall, performance across all venture time frames remained relatively strong, according to U.S. Venture Capital Index calculated by Cambridge Associates and co-released with the National Venture Capital Association.

Quarterly performance was 3 percent, one-year performance was 29.1 percent, five-year performance was 14.8 percent, and 10-year performance was 10.3 percent.

However, quarterly, one-year, three-year and 15-year returns were down from the first quarter. Five-year, 10-year and 30-year returns were up from the first quarter. Quarterly performance trailed the Nasdaq Composite, but bested the Dow Jones Industrial Average.

The reason for the decline had a lot to do with expansion-stage and late-stage returns. The quarterly Cambridge late- and expansion-stage index was -1.3 percent in the second quarter compared with 3.6 percent in the first.

The full report is here: Cambridge Q2 14 Benchmark Release

Roller coaster illustration courtesy of ShutterStock