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Venture capital returns improve in Q1

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Metal spheres on a seesaw with three black pebbles over white background. Finance concept image for illustration of ROI or investment. Photo courtesy of olm26250/iStock/Getty Images.

Venture capital performance markedly improved in the first quarter, with the asset class’ quarterly IRR rising to 3.22 percent, according to a preliminary report from Cambridge Associates.

That is up from -0.07 percent in the fourth quarter.

Particularly strong was the return for late- and expansion-stage funds, where the IRR jumped to 5.15 percent, Cambridge said. That compares with 0.5 percent in the fourth quarter.

Returns for early-stage funds came to 3.28 percent, up from -0.54 percent in the fourth quarter.

Lagging was the performance for multi-stage funds. Their IRR was 2.48 percent, an improvement from 0.59 percent in the fourth quarter, the report shows.

Photo of illustration concept of ROI courtesy of olm26250/iStock/Getty Images