![]() A vintage year approach would benchmark these funds against different peer groups because they are different vintage years. Imagine you had a 2016 vintage fund and a 2017 vintage fund that both called the bulk of their capital in 2018. 2 Effective duration is an extension to the concept of a fund’s vintage year that adapts to how quickly that fund invests its money. ![]() How did we improve on industry-standard measures to create an apples-to-apples way of comparing venture funds across vintage years?įirst, we put all funds onto the same footing by focusing on a fund’s effective duration, which measures the capital-weighted time that the fund has been investing. Try the AngelList Fund Performance Calculator Now All you need to do is enter a VC fund’s net IRR and net TVPI figures to get back a 0-to-100 percentile score that we believe accurately reflects the performance of that fund in a broader context. We combined data from these funds, AngelList syndicate leads that have made at least 10 investments but don’t operate a fund, and external sources like PitchBook and Cambridge Associates to build the first-ever fund performance percentile calculator that functions across vintage years. Moreover, within a vintage year funds will invest at different rates our research has found funds that invest faster will tend to have lower IRRs but higher TVPIs than their slower-investing peers, creating ambiguity for investors.ĪngelList Venture hosts hundreds of funds on our world-class administration and fundraising platform. For instance, a fund that is at the 76th percentile can advertise being in the top quartile, the highest distinction, while a fund at the 74th percentile, which may have marginally lower returns, will have to settle for the “second quartile” distinction. 1 This approach can be arbitrary and ambiguous. The existing approach to benchmarking a venture capital fund is to measure its returns quartile relative to its peers in a vintage year.
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