venture capital returns

Filed in archive Venture Capital on July 25, 2004

siliconvalley.com has interesting facts about VC return:

"For the first time since 2000, the one-year return on venture capital investments posted a double-digit annual gain as of March 31. The return on all venture funds was 15.7 percent. Funds investing in the riskiest early-stage start-ups still recorded a loss, but later-stage fundings gained more than a third. Only over a five-year horizon did venture investments outperform public stocks."

1-YR

3-YR

5-YR

VENTURE FUND TYPE

Early/seed fundings	-2.9%	-19.8%	47.1%
Balanced fundings	20.5%	-9.4%	17.5%
Later-stage fundings	38.0%	-6.9%	7.1%
All venture funds	15.7%	-13.3%	22.0%

STOCK INDEXES

Nasdaq index	48.7%	2.7%	-4.1%
S&P 500 index	32.8%	-1.0%	-2.6%