New data shows that venture capitalists are realizing better returns on investments – in fact at the best rates since 2009.
Cambridge Associates’ Venture Capital Index showed “moderate return increases” in the first quarter on one-, three-, 15- and 20-year time frames.
The 10-year return was the best since the third quarter of 2009.
However, Mark Heesen, president of the National Venture Capital Association, said there remains much room for improvement.
“Venture capital returns continue to head in the right direction and we are encouraged by the stability of the gradual climb over the last year,” Heesen said.
“The passage of the JOBS Act in April has resulted in many more companies registering confidentially for an IPO, building a stronger pipeline that could have a very positive impact once those offerings come to market. This potential, coupled with a healthier acquisitions market, could point to better returns over the next several quarters even in the face of significant head winds in many of the nations’ economies, as well as current political instability in some regions of the world.”