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Benchmark Returns of Venture Capital Funds

by Gary Broughton

  • 07 Jan 2011
  • PE

Preqin currently holds performance data for over 1,600 venture capital funds. An analysis of the median net IRRs and quartile boundaries of these funds by vintage year gives an indication of the collective performance of these funds. Funds with vintage years between 1990 and 1997 show the highest median net IRRs, in the range of 15-32%, with 1997 vintage funds showing the highest median net IRR of 31.2%. Vintage 1997 funds also show the highest top quartile IRR boundary of 71.1%.

With the effects of the dot-com crash, benchmark returns of venture capital funds with vintage years of 1999 onwards are far lower than earlier vintage funds, with 1999 vintages showing a median net IRR of -12%. For 1999 and 2000 vintage funds, even the top quartile IRR boundaries are in the red, at -1.3% and -2% respectively

Funds with vintages 2000-2007 all show negative median net IRRs and the difference between top and bottom quartile IRR boundaries are smaller compared to vintage 1990-1997 funds.

More details on private equity performance can be found on Preqin’s Performance Analyst.

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