Another Sign That Venture Capital Is Slowly Improving

It’s hard to say that the future of venture capital is looking brighter. But maybe it’s turned a corner?

Rising interest rates and fear of a recession in the U.S. made 2022 and 2023 terrible years in venture capital, a period that included a five-quarter streak of negative performance. That streak broke in the second quarter last year, when VC funds returned 0.2 percent, according to a report by BlackRock’s eFront, which calculated the return using the cash flow information of 2,431 VC funds a (mix of early-stage, balanced, and late-stage) on a net-of-fee basis. But the second quarter’s positive momentum didn’t continue into the second half of 2023. READ MORE