Shhh don't say it too loudly - but there's some optimism returning to emerging VC funds these days.
Let's start with net IRR, net TVPI, and DPI from 2,700+ US VC funds, broken down into quartiles to help pinpoint performance.
All data taken from our VC Fund Performance report for Q2 2025. 25+ charts of great data on VC performance and market dynamics.
Read the full report: https://lnkd.in/gZ4RUvbW
𝗛𝗶𝗴𝗵𝗹𝗶𝗴𝗵𝘁𝘀
𝗞𝗲𝘆 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗺𝗲𝘁𝗿𝗶𝗰𝘀 𝗮𝗿𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗿𝗶𝘀𝗲: The value of the typical venture fund inched up. For the 2017 vintage, median TVPI rose to 2x. Net IRRs also mostly trended up in Q2, with the median for the 2017 vintage climbing to 13.8%.
𝗔𝘃𝗲𝗿𝗮𝗴𝗲 𝗟𝗣 𝗰𝗵𝗲𝗰𝗸 𝘀𝗶𝘇𝗲𝘀 𝗵𝗮𝘃𝗲 𝗴𝗿𝗼𝘄𝗻: Among tiny funds, among medium funds, among big funds - this same trend of larger checks from 2022 on holds true.
𝗗𝗿𝘆 𝗽𝗼𝘄𝗱𝗲𝗿 𝗶𝘀 𝗱𝗿𝘆𝗶𝗻𝗴 𝘂𝗽: Most VC funds raised prior to 2021 have little dry powder remaining. Funds in the 2020 vintage, for instance, have just 11% of their total committed capital still available to invest. More recent funds are also deploying capital quickly. Funds in the 2023 vintage have 42% of their cash in reserve, while 33% of capital from the 2022 vintage remains as dry powder.
Note that the majority of the data comes from funds with less than $100M in committed capital.
And ya, I know it's too early to truly care about metrics from the 2023 or 2024 vintages. But guess what LPs still ask about? 😇
Data for the emerging manager!
#VC #VCfunds #VCperformance #startups
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