Do small venture funds outperform bigger venture funds?
Yes...okay, it's not that simple.
Did some basic compare and contrast in the data table below. All the figures come from 1,201 US venture funds that use Carta as their fund administrator.
We looked at the top decile (or 90th percentile, if you prefer) marks for funds in two different size tiers: $1M-$25M on the low end and $100M-$250M on the higher end.
Data for each vintage year is as of Dec 31, 2024.
𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀
Data is pretty clear across years: the smaller funds tended to have higher top decile marks for net IRR and net TVPI.
DPI is a lot more varied (and probably not super useful yet for the immature vintages).
The gap between between fund sizes is sometimes narrow and sometimes quite large.
𝗖𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀
So yes, top decile marks tend to be higher in smaller funds. But that is obviously not the only consideration! LPs have to think through a lot of factors.
Obviously there are many more small funds, so selecting the top 10% performers is harder. If an LP is trying to write $10M checks, investing into $15M funds is pretty tough.
Other questions!
Small funds seem to have higher marks at the top end - but do they have lower ones at the low end? (Investigating this now)
How sticky is manager performance from fund to fund?
What can smaller managers do to prove they are great bets before these data get truly useful (so in the first 3-4 years)?
If you want answers to these questions, join us tomorrow morning at 10am PT at our virtual event. I get to learn from Hunter Walk and Jamie Rhode, CFA on all things emerging manager: https://lnkd.in/ge7V4ggi
#startups #venturecapital #VCfunds #emergingmanagers #fundperformance
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
