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October 08, 2023 | Tom Ballard

Negative IRRs reported for Q4 of 2022

That's according to data from PitchBook's Quantitative Perspectives report.

After about half a decade of registering double-digit percentage returns in nearly every quarter, venture capital’s performance has reversed dramatically, PitchBook reports.

According to its latest Quantitative Perspectives report, the internal rate of return (IRR) for U.S.-based venture capital funds fell to -16.8 percent in Q4 2022. PitchBook reports that’s the worst quarterly return the asset class has posted in a decade.

Marina Temkin writes that “venture capital funds were forced to mark down their late-stage portfolio companies in line with comparable public companies that tanked last year amid rising interest rates. While venture capital is far from being out of the woods, many investors believe that Q4 2022 will end up being the asset class’s worst-performing quarter for a while.”

Click here for her analysis.

 


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