The IPO market remains stalled. The M&A market is softer than in years. It is no surprise venture capital returns fell again in the first quarter for the third quarter in a row.
Quarterly returns for the period ending March 31 fell 2.9 percent, according to the National Venture Capital Association and Cambridge Associates. This is less than the 12.5 percent drop of the fourth quarter – which suggests the declines might be easing.
The 2.9-drop indicates that the one-year returns for venture funds is a -17.5 percent. Three year returns are 1.3 percent.
A year ago, one-year returns were 11.7 percent.
Don’t expect a big improvement until initial public offerings begin interesting public market investors again.
