Venture Capital Returns Dip for Third Straight Quarter

Authored by Mark Hefflinger on August 12, 2009 - 8:19pm.

Arlington Va. - Venture capital returns dipped 2.9% for the period ending March 31, marking the third straight quarter of declines, according to new figures from Cambridge Associates and the National Venture Capital Association (NVCA).

Though the figures were an improvement over the prior quarter, when returns fell more than 12%, the organizations said that more positive news may still be a ways off.

"It is going to take a full-fledged recovery of the venture-backed IPO and acquisitions market to move these returns back to historical levels," said Mark Heesen, president of the NVCA.

"Unfortunately, this recovery seems to be a way off as the number of IPOs and acquisitions, and the pipeline of registrations remain at low levels."

Heesen said that once the exit market returns, "so too shall these returns."

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