Arlington, Va. - Though still showing positive returns across all investment horizons, venture capital performance declined during the second quarter, according to a new report from Thomson Reuters and the National Venture Capital Association (NVCA).

Hurt primarily by the stagnant market for initial public offerings (IPOs), investment returns over a one-year span declined 8.2% from the previous quarter to 5.1%.

Returns over three-, five- and 10-year spans also showed more modest declines.

"We have yet to see the full impact of the capital markets crisis in the venture capital performance numbers," said Mark Heesen, president of the NVCA.

"We will likely begin to see pressure on both short and long term returns in the next several years as the highly prosperous years of 1998 and 1999 fall out of the ten-year numbers and are replaced with the most recent years when the IPO window has been sealed shut."

Related Links:
http://snipurl.com/4r0tq (PDF of report)

http://www.nvca.org