Venture capital returns show gain in Q3

Venture capital returns improved in the third quarter of 2017, with quarterly performance more than doubling to an IRR of 3.23 percent.

Short-term time-horizons improved most, with the last year’s third-quarter performance rising from 1.35 percent in the second quarter, according to Cambridge Associates. The nine-month performance climbed to 8.05 percent from 4.68 percent.

Most longer-term horizons improve, but less so, including the three-, five- and 10-year time periods, Cambridge data shows. Only the one-year and 20-year periods fell.

The strongest short-term improvements came largely from early and late-stage funds. Quarterly and nine-month gains at multi-stage funds were less dramatic.

The industry’s five-year return as of the third quarter was 14.76 percent, while its 10-year was 9.11 percent and its 25-year, 28.20 percent.

Photo of performance meter courtesy of turk_stock_photographer/iStock/Getty Images.