Scott Murphy AVG Blog February 11, 2020

Venture Returns Outperform Public Markets

Venture capital has outperformed the public markets over the last 25 years.

Venture Returns Outperform Public Markets

February 11, 2020 | Scott Murphy

Return potential plays a part in most individual and institutional investors’ decision criteria when reviewing investment options. But how does one compare the gains of asset classes that have different characteristics and measures of success? In a recent white paper, we analyze objective performance comparisons between venture capital and public markets over the last several decades, based on historical data from investment firm Cambridge Associates (CA).

If your goal is to add investment opportunities that have both high return potential and strong diversification characteristics, CA’s findings show that top-quartile venture capital has outperformed the S&P by ~2x over the last 5-, 10-, 15-, and 25-year periods. The venture capital industry as a whole has outperformed the public markets on each of those time horizons as well. AVG provides actively indexed venture portfolios to investors and co-invests alongside top-quartile venture firms in the overwhelming majority of its deals.

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About the Author

Luke is Co-Founder and Chief Community Officer of Alumni Ventures Group. He is an experienced entrepreneur with a focus on marketing, sales operations, and customer experience. He has a background in private equity, and has scaled several startups as employee #1, including bootstrapped, angel-backed, and venture-backed companies. His first company, Urban Escapes, was acquired by LivingSocial. He is also the Founder of the AVG Venture Fellow Program. Luke has an AB in Environmental Studies from Dartmouth College.

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