Pre-1997 Vintage VC Funds Vastly Outperform Later Vehicles
March 06, 2014
PitchBook’s 1Q 2014 Global PE & VC Benchmarking Report, which released yesterday, mostly takes a look at alternative asset fund vintages from 2001 and 2011, but our fund returns information goes farther back to the early 1990s. And this is where we begin to see some startling numbers.
From 2001-2011, the best performing VC vintage by median IRR has been 2009 funds, with a 10.7% IRR. Sure, there has been steady improvement—particularly for newer vintages—from the depths of the early 2000s, but nothing from the last 15 years compares to what VC funds were returning from 1992 to 1996, when every vintage posted a median IRR of more than 12.5%. 1993 and 1995 were particularly impressive years, with both vintages breaking the 30% IRR mark.
To learn more about 1990s funds and get a look at a specific fund, Kleiner Perkins Caufield & Byers VII, click here.