Qubit: Cambridge Associates U.S. VC Benchmark Q3 2022
According to the Cambridge Associates benchmark report on U.S. venture capital, the 1-year return as of September 30, 2022 is a negative 8.48%.
But the 25-year annual return is 24.68%.
Overall U.S. VC Performance:
Quarter: (2.35%)
YTD: (15.00%)
1-Year: (8.48%)
3-Year: 30.11%
5-Year: 24.49%
10-Year: 19.19%
15-Year: 13.35%
20-Year: 12.10%
25-Year: 24.68%
"The private investment industry is returning to basics, incorporating the now-known unknowns and macroeconomic information into asset selection, underwriting, and valuation. Dry powder is no longer considered easily replaced and thus is being husbanded accordingly. From a private equity perspective, the prevailing (COVID-era) 'growth at any price' approach has been replaced by one focused on profitable growth, with value creation plans grounded in fundamentals. Venture capitalists—plagued by public tech sector woes and now a banking crisis—are waving goodbye to tourist investors who were dominating investment activity during COVID-19 and focusing on shepherding their portfolio companies to the other side of this moment intact. Valuations across the asset classes are coming back down toward long-term averages and expectations."
Source:
Cambridge Associates - Private Investment Benchmarks
Is This a New Era for Private Investments?
Tweets and Posts:
Qubits are insights that we find and share with you.