Venture Capital Performance Varies by Vintage Year

• Vintage year significantly impacts top-decile performance
• In strong bull markets top-decile funds achieve higher TVPI/DPI/IRR than in weaker markets
  
  

Fund Stage Affects Metrics

• Early-stage funds (pre-seed/ seed):
  • Often have higher TVPI, DPI and IRR because they target companies with exponential growth potential
  • TVPI: 3x-5x, with outliers hitting 10x+
  • DPI: 1x-3x+, as distributions often lag behind unrealized value
  • IRR: 25%-40%, but some vintage years and markets can push this higher
    
    
• Later-stage funds (growth/late-stage):
  • Have lower top-decile metrics because investments are closer to exit and valuations are more stable
  • TVPI: 2x-3x
  • DPI 1.5x-3x reflecting faster distributions
  • IRR: 15%-25%, as shorter holding periods reduce compounding potential but improve cash efficiency
• Definitions are Contextual:
  • Top decile represents the top 10% funds by performance in each dataset or market environment 

Top-decile DPI metrics for recent eras reflect the successes of the best-performing funds that capitalized on favorable conditions early, while the broader market struggles with delayed exits and valuation resets.