Venture Capital Performance Varies by Vintage Year
Vintage year significantly impacts top-decile performance
In strong bull markets top-decile funds achieve higher TVPI/DPI/IRR than in weaker markets
Fund Stage Affects Metrics
Early-stage funds (pre-seed/ seed):
Often have higher TVPI, DPI and IRR because they target companies with exponential growth potential
TVPI: 3x-5x, with outliers hitting 10x+
DPI: 1x-3x+, as distributions often lag behind unrealized value
IRR: 25%-40%, but some vintage years and markets can push this higher
Later-stage funds (growth/late-stage):
Have lower top-decile metrics because investments are closer to exit and valuations are more stable
TVPI: 2x-3x
DPI 1.5x-3x reflecting faster distributions
IRR: 15%-25%, as shorter holding periods reduce compounding potential but improve cash efficiency
Definitions are Contextual:
Top decile represents the top 10% funds by performance in each dataset or market environment
Top-decile DPI metrics for recent eras reflect the successes of the best-performing funds that capitalized on favorable conditions early, while the broader market struggles with delayed exits and valuation resets.
Does the information in the table represent global or USA metrics?
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Community Member
Dec 02, 2024 5:05am
The best data for earlier vintages is US and for later vintages both US and Europe. There is not reliable global data.
