Performance

A patient and resilient asset class

Venture capital has consistently delivered attractive returns for disciplined, long-term investors who can withstand periods of volatility. The current landscape, though challenging for recent vintages, reinforces the need for selectivity, operational discipline, and strategic patience.

TVPI

1.9x

2019

2.2x

2018

2.9x

2017

3.0x

2016

3.2x

2015

Vintage performance trends: beyond the numbers

Strong results from pre-2020 funds

Funds launched in 2015–2019 demonstrate the enduring strength of venture capital as an asset class. Top-quartile funds from these vintages have delivered high total value to paid-in (TVPI) multiples and consistent IRRs above 24%. These funds benefitted from a rising valuation environment and robust exit activity during the liquidity-rich pre-pandemic years.

The post-pandemic reality for recent vintages

Vintage 2021 and 2022 funds, while still promising attractive returns, are navigating a tougher road. These vintages launched during a high-valuation period and faced immediate headwinds, including pricing corrections, an exodus of later-stage capital, a closed IPO window, tightening budgets, and slowing growth. Yet these funds are still early in their development and attractive TVPIs can materialize over time.

VC returns were highly reactive to the general market decline in 2022 and, as a leading indicator of private market performance, VC is expected to be among the first to rebound.

Preqin

Venture capital remains a cornerstone of growth and technology investing for institutional portfolios because of its long-term historical track record and outsized return potential. While individual vintages vary in performance, the asset class as a whole has demonstrated remarkable resilience through market cycles. Over the past two decades, top-quartile venture funds have consistently achieved IRRs exceeding 20%, proving the value of consistent and disciplined fund selection.

Source: PitchBook