Venture capital funds' net internal rate of return was -15% for the first nine months of 2022, according to Cambridge Associates.
While VC funds had a -8.5% IRR for the year ended Sept. 30, they easily topped the CA Modified Public Market Equivalent Russell 2000 index and the CA Modified Public Market Equivalent NASDAQ Composite index, which were -20.7% and -26.4%, respectively. The CA Modified Public Equivalent seeks to reproduce private investment performance under public market conditions with shares purchased and sold according to the private fund cash flow schedules.
VC funds also generally bested the mPME indexes over longer time frames.
