Venture capital returns have begun to recover with exits from companies such as LinkedIn, Zynga, Jive Software and Imperva fueling liquidity. Funds from 2007 and 2008 are good examples of the renewal.
The University of Texas Management Company bought into 11 venture funds with vintages from the two years, and the holdings represent a promising portfolio. Most of the funds have not returned substantial capital yet. But IRRs calculated from their investments are substantial.
Several of the funds are particular standouts. Spark Capital II is at the head of the class with a 70.88% IRR, according to a peHUB analysis of UTIMCO’s November 2011 portfolio report. Foundry Venture Capital 2007 is a nose behind with an IRR of 66.9% and Morgenthaler Venture Partners IX is holding its own at 22.66%.
Respectable funds from Gobi Partners and Union Square Ventures round out the top five.
Last Monday’s slideshow looked at 2005 and 2006 venture funds and pointed how the median IRR of the 12 funds in the UTIMCO portfolio broke into the black late last year.
The median IRR for the 2007 and 2008 funds isn’t by itself all that exciting at 0.28%, according to the peHUB analysis. One outlier fund from Intellectual Ventures lowers it far below where it would be otherwise.
Individual performance is another story. It is far more dynamic. The top IRR from last week’s batch of 2005 and 2005 funds was 14.8%. Spark has it beat more than fourfold.
Find the slideshow below, organized from worst to best IRR. Together the funds represent $377 million of UTIMCO commitments:
Photo courtesy of Shutterstock.
Firm: Intellectual Ventures
Commitment: $50 million
Cash In: $21.1 million
Cash Out: 0
Portfolio Value: $4.4 million
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- Slideshow: Early Stage Funds Dominate CalPERS’ Top 10 Venture Funds
- Mid-Life Venture Funds Break Into the Black: A Look at UTIMCO’s Mid-Decade Portfolio: Slideshow