Archangel Ventures reposted this
Carta's Q1 VC Fund Performance data highlights a key reality in venture capital: generating substantial returns takes time and isn't easy. Persistence and patience are crucial for both founders and investors. This is why I have immense respect and admiration for the founders and VC partners who defy the odds and deliver exceptional returns for their investors. Their success stories prove that achieving the extraordinary *is* possible. Many emerging VCs believe the venture capital business is all about raising capital, getting enough dealflow to deploy the capital of the fund, or achieving high valuation markups on invested cash (TVPI). However, the true measure of success and sustainability of the model relies on returning more cash to investors than they initially contributed (DPI > 1). At Archangel Ventures, we're fortunate to be outperforming the median for emerging managers in key metrics (DPI, IRR, and TVPI) across our early-stage investments, as highlighted by Carta's data. While the VC lifestyle may seem fast and glamorous, it's often a slow and steady grind before reaping the rewards. Carta's data visually demonstrates the time it takes to see initial returns and how market conditions can impact performance. The graph isn’t smoothly up and to the right 😉 Q1 2024 was another tepid quarter for venture capital deployment, with the lowest number of rounds completed since Q1 2019. Additionally, 42% of priced seed rounds were bridge rounds, down rounds reached a 5-year high, and the time between seed and Series A rounds extended. However, for those of us who have weathered previous market cycles, we know these challenges are temporary. The full report link is in the comments and thank you again Peter Walker and the rest of the Carta team for sharing this data publicly.