U.S. venture capital returns increased 8.4% in the fourth quarter of 2010, up from 3.71% in the third quarter and substantially higher than the 3.25% return for the fourth quarter of 2009, according to data released by the National Venture Capital Association and Cambridge Associates.
The one-year return was 13.5%, the five-year compound-annualized return was 5.67% and the 10-year compound-annualized return was -2%.
The best-performing sector during the fourth quarter of 2010 was late and expansion stage with a 12.2% return, followed by early stage at 8.5% and multistage with 6.7%.
The Cambridge Associates U.S. Venture Capital index returns are pooled end-to-end returns, net of fees, expenses and carried interest.
Separately, overall private equity returns were 7.63% in the fourth quarter of 2010, up from 5.18% in the prior quarter and an increase from 5.65% in the fourth quarter of 2009, according to Cambridge Associates.
The private equity return for the year ended Dec. 31 was 19.86%. The five-year compound-annualized return was 9.48%, and the 10-year compound-annualized return was 9.66%.
