Returns, risks and liquidity of VC Funds in Q1 2019
Active venture capital funds made a very impressive closure of 2018, far exceeding historical averages. These high last-quarter returns remain …
A detailed analysis of venture capital funds globally shows that Chinese funds of vintage years 1997-2018 have delivered returns of 1.79x (total value to paid-in), comparing favourably with US funds on 1.70x and and Western European vehicles on 1.75x.
In addition, the research shows that Chinese funds take longer to reach maturity and have demonstrated longer hold periods for investments. In terms of time to liquidity, Chinese funds average close to 5.5 years, while US and Western European funds have a time to liquidity of under 5 years. The same is true for the global average.