New York - Returns on venture capital investments nationally declined 7.6% compared to the fourth quarter of 2007 for an overall return of 13.3% in the first quarter of 2008, according to newly released data from Thomson Reuters and the National Venture Capital Association (NVCA).

"The IPO market has now been essentially shut down for venture-backed companies for over seven months," said Mark Heesen, president of the NVCA, in an announcement.

"Combined with a skittish M&A market, shorter term performance returns are and will continue to be impacted.

"That said, our asset class continues to out perform many other investment alternatives including the public markets over the long term. But we will need to see the exit markets improve dramatically to maintain that position in the coming year."

Related Links:
http://www.nvca.org/pdf/PerformanceQ108FINAL.pdf (PDF)