Hot Venture Funds From 2007 And 2008 Suggest Good Vintages: Slideshow


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.

[slideshow]

[slide title=”No. 1: Invention Development Fund I”]

Vintage: 2007

Firm: Intellectual Ventures

Commitment: $50 million

Cash In: $21.1 million

Cash Out: 0

Portfolio Value: $4.4 million

IRR: -70.32%

[slide title=”No. 2: Arch Venture Fund VII”]

Vintage: 2007

Firm: Arch Venture Partners

Commitment: $40 million

Cash In: $16.4 million

Cash Out: $258

Portfolio Value: $15 million

IRR: -4.77%

[slide title=”No. 3: Invention Investment Fund II”]

Vintage: 2007

Firm: Intellectual Ventures

Commitment: $50 million

Cash In: $26.5 million

Cash Out: $7.9 million

Portfolio Value: $17.5 million

IRR: -2.9%

[slide title=”No. 4: Austin Ventures X”]

Vintage: 2008

Firm: Austin Ventures

Commitment: $25 million

Cash In: $13.9 million

Cash Out: $263,000

Portfolio Value: $14 million

IRR: 1.62%

[slide title=”No. 5: Pinto TV Annex Fund”]

Vintage: 2007

Firm: Pinto Technology Ventures

Commitment: $7 million

Cash In: $7 million

Cash Out: 0

Portfolio Value: $7.6 million

IRR: 2.34%

[slide title=”No. 6: TCV VII”]

Vintage: 2007

Firm: Technology Crossover Ventures

Commitment: $50 million

Cash In: $31.9 million

Cash Out: $319,000

Portfolio Value: $33.3 million

IRR: 4.47%

[slide title=”No. 7: Union Square Ventures 2008″]

Vintage: 2008

Firm: Union Square Ventures

Commitment: $25 million

Cash In: $17.5 million

Cash Out: 0

Portfolio Value: $21.9 million

IRR: 17.59%

[slide title=”No. 8: Gobi Fund II”]

Vintage: 2007

Firm: Gobi Partners

Commitment: $25 million

Cash In: $15.3 million

Cash Out: $1.2 million

Portfolio Value: $20.2 million

IRR: 17.79%

[slide title=”No. 9: Morgenthaler Venture Partners IX”]

Vintage: 2008

Firm: Morgenthaler Management Partners

Commitment: $40 million

Cash In: $14 million

Cash Out: $869,000

Portfolio Value: $18.4 million

IRR: 22.66%

[slide title=”No. 10: Foundry Venture Capital 2007″]

Vintage: 2007

Firm: Foundry Group

Commitment: $40 million

Cash In: $33.7 million

Cash Out: $10.2 million

Portfolio Value: $107.5 million

IRR: 66.9%

[slide title=”No. 11: Spark Capital II”]

Vintage: 2007

Firm: Spark Capital Partners

Commitment: $25 million

Cash In: $17.8 million

Cash Out: $14.7 million

Portfolio Value: $40.1 million

IRR: 70.88%

[/slideshow]