VENTURE CAPITAL RETURNS CONTINUE TO IMPROVE THROUGH Q4 2010
With the exception of the 15-year returns which declined
slightly, venture capital performance improved from last quarter across all time horizons as of
the end of the fourth quarter of 2010, according to the Cambridge Associates U.S. Venture
Capital Index®, the performance benchmark of the National Venture Capital Association
(NVCA). The increase in returns marks a continued trend in which the improved exit markets
and more favorable portfolio valuations are positively impacting venture performance for the
first time since the recession of 2008. Venture capital performance also surpassed the public
market indices for the quarter, 5-, 15- and 20-year time horizons as of the end of 2010.
Venture capitalists are committed to funding America’s most innovative entrepreneurs, working
closely with them to transform breakthrough ideas into emerging growth companies that drive
U.S. job creation and economic growth. According to a 2011 Global Insight study, venturebacked
companies accounted for 12 million jobs and $3.1 trillion in revenue in the United States
in 2010. As the voice of the U.S. venture capital community, the National Venture Capital
Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for
policies that encourage innovation and reward long-term investment. As the venture
community’s preeminent trade association, NVCA serves as the definitive resource for venture
capital data and unites its 400 plus members through a full range of professional services.
For more information about the NVCA, please visit http://www.nvca.org.