Cambridge Associates and NVCA released the most recent performance statistics today. Results are shown net to the pension funds, endowments, etc (LPs) which are the industry's investors.

This release updates the numbers through 12/31/2009. As the commentary points out, there is some recent-term strengthening so short-horizon performance numbers improved.  However, with the heady year of 2009 rolling out of the 10-year numbers those numbers declined as expected. What remains in the 10-year numbers is the relatively quiet post-bubble period. Note that over the long term (20 years) VC continues to outperform the public markets by 2x or better. Investors often say that they look to venture capital investment to provide 300 to 500 basis points (3% to 5%) above the public markets.  The press release and a full, more detailed report which includes industry sector and vintage year breakouts are also available.

This is also the second quarter we have published cash ratio returns by vintage year. Some academicians and practitioners argue that cash ratios (ratio of outcomes to total investor dollars put in by limited partners) are a preferable measure of performance than, or an important companion measure to, IRRs. We provide both.