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Venture Net Cash-Flows by Vintage Year

by Bronwyn Williams

  • 04 Jun 2010
  • PE

Analyzing the venture cash-flow data for the vintage years 1997 to 2008 illustrates two different trends. Funds which began investing prior to the dot-com crash (vintages 1997 and 1998 funds) broke even in their third and fourth investment years respectively, whereas later vintages are yet to move into the black. The cash-flow data for vintage 1999 and 2000 funds have not generated a profit for their investors as the net cash-flow graphs for these vintages are still negative despite their maturity.  More recent vintages are yet to generate a profit for their investors as the cash-flows graphs for these years are more reflective of the capital draw down from investors. As fund managers begin to add value to their investments and return capital back to their investors these vintages are likely to move into positive territory in the later stages of their investment cycles.

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