Firms & Funds

Venture capital returns soften in the second quarter

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VCJ Fund Performance VC
Photo of words spelling "Measure Performance" and measuring tape on cork board background courtesy of npstockphoto/iStock/Getty Images.

Venture capital returns softened in the second quarter, but strengthened modestly for some longer-term horizons.

The second quarter saw net returns to limited partners of 1.35 percent, according to Cambridge Associates. Quarterly returns in the first quarter of 2017 were 3.3 percent.

At the same time, 1-year returns rose to 8.1 percent from 7.1 percent at the end of the first quarter. And 5-year returns climbed to 14.08 percent from the first-quarter mark of 13.7 percent, Cambridge reported.

Fifteen-year and 25-year performances also rose, with the 25-year mark finishing the second quarter at 27.34 percent.

Twenty-year and 10-year returns fell.

The quarter saw the best performance from multi-stage funds, followed by early stage ones.