Venture Capital Industry Shows Uptick in Returns
For the first time in nearly a year, the venture capital industry showed a positive return, according to Cambridge Associates, LLC. The Cambridge US Venture Capital Index returned 0.2% for the three-month period ended June 30, 2009, ending three consecutive quarters of negative returns. Of course, in an economy still clouded in doubt and pessimism, the positive news was paired with a cautionary outlook. Managing Director Peter Mooradian raised questions about whether the asset class can generate sufficient exits to provide healthy long-term returns.
It will be interesting to see the figures for the current quarter after Google's recent acquisition of AdMob for $750 million and EA's recent acquisition of PlayFish for $300 million (with an additional $100 million in earnouts).
