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Gradually Improving IPO Market Produces Strengthened Venture Capital Fund Performance

Arlington, VA (PRWEB) February 03, 2014

Venture capital fund performance continued to make gains across most time horizons as of September 30, 2013, according to the Cambridge Associates LLC U.S. Venture Capital Index®, the performance benchmark of the National Venture Capital Association (NVCA). The quarterly, 1-, 3-, 5-, 10- and 15-year horizons all showed higher returns with no change in the 20-year horizon. The 10-year return inched higher for the 14th consecutive quarter and the 1-year performance indicator nearly doubled from one year ago. Despite these improvements, the 1-, 3-, and 5- year returns were bested by the DJIA, NASDAQ Composite, and S&P 500 as of Q3 2013.

“In the past 10 years, returns overall have been more modest than those of the previous decade but some great companies were created in this period, many of which are expanding their growth by going public or being acquired,” said Bobby Franklin, president and CEO, NVCA. “The industry has been optimistic about seeing an improvement in VC fund performance, and it’s encouraging to see that materialize. Given the better exit environment, the IPO markets generated welcomed returns to limited partners and that should continue through Q4 2013 and we hope in 2014,” Franklin added.

“A healthy IPO market and M&A activity both benefitted biotech and IT companies alike,” said Theresa Sorrentino Hajer, Managing Director, Venture Capital Research at Cambridge Associates. “While there were several success stories involving large companies, the IPO market remains highly selective and volatile. The stronger exit environment has meant good news for LPs in the form of distributions from venture funds.”

Vintage Year Return Ratios

The following chart lists the ratio between the dollars paid into venture capital funds by limited partners (LPs) and the dollars distributed to them by vintage year. For example, the 2002 vintage year funds have distributed cash of 0.67 times the amount of capital paid in by LPs and the residual value is 0.36 times the paid-in capital; the total value multiple is therefore 1.03 times. It is important to note that the residual value is unrealized and will change as companies exit the portfolio, are re-valued, or are written off. The 2003 and 2004 vintage year funds show the most positive ratio of the last decade, with returns at 1.58 and 1.49 times (respectively) the capital contributed by LPs, should those funds realize the value of what remains in the portfolio. More recent vintage years have yet to return significant cash to LPs as most funds do not have the opportunity to begin returning capital until after year five.

Additional Performance Benchmarks

To view the full, comprehensive report, which includes tables on additional time horizons, vintage years, and industry returns, please visit the Cambridge Associates or NVCA websites.

Cambridge Associates derives its U.S. venture capital benchmarks from the financial information contained in its proprietary database of venture capital funds. As of September 30, 2013, the database included 1,439 venture funds formed from 1981 through 2013.

About The National Venture Capital Association

Venture capitalists are committed to funding America’s most innovative entrepreneurs, working closely with them to transform breakthrough ideas into emerging growth companies that drive U.S. job creation and economic growth. As the voice of the U.S. venture capital community, the National Venture Capital Association (NVCA) empowers its members and the entrepreneurs they fund by advocating for policies that encourage innovation and reward long-term investment. As the venture community’s preeminent trade association, NVCA serves as the definitive resource for venture capital data and unites nearly 400 members through a full range of professional services. For more information about the NVCA, please visit http://www.nvca.org.

About Cambridge Associates

Founded in 1973, Cambridge Associates is a provider of independent investment advice and research to institutional investors and private clients worldwide. Today the firm serves over 950 global investors and delivers a range of services, including investment consulting, outsourced portfolio solutions, research services and tools (Research Navigatorsm and Benchmark Calculator), and performance monitoring, across asset classes. The firm compiles the performance results for over 5,500 private partnerships and their more than 68,000 portfolio company investments to publish its proprietary private investments benchmarks, of which the Cambridge Associates LLC U.S. Venture Capital Index® and Cambridge Associates LLC U.S. Private Equity Index® are widely considered to be among the standard benchmark statistics for these asset classes. Cambridge Associates has been selected to provide data and to develop and maintain customized industry benchmarks for a number of prominent industry associations, including the Institutional Limited Partners Association (ILPA), Australian Private Equity & Venture Capital Association Limited (AVCAL); the African Venture Capital Association (AVCA); the Canada Venture Capital and Private Equity Association (CVCA);the Hong Kong Venture Capital and Private Equity Association (HKVCA); the Indian Private Equity and Venture Capital Association (IVCA); the New Zealand Private Equity & Venture Capital Association Inc. (NZVCA); the Asia Pacific Real Estate Association (APREA); and the National Venture Capital Association (NVCA). Cambridge also provides data and analysis to the Emerging Markets Private Equity Association (EMPEA). Cambridge Associates has more than 1,100 employees serving its client base globally and maintains offices in Arlington, VA; Boston; Dallas; Menlo Park, CA; London; Singapore; Sydney; and Beijing. Cambridge Associates consists of five global investment consulting affiliates that are all under common ownership and control. For more information about Cambridge Associates, please visit http://www.cambridgeassociates.com.







Mode Project Produces Pollie Award-Winning Animated Political Ad


Chicago, IL (PRWEB) April 16, 2012

Red, White, and You, an animated bio video produced for Maine State Representative Jon Hincks U.S. Senate campaign, has earned a Pollie from the American Association of Political Consultants. The ad was written by consultancy Revolution Political Media and produced by Mode Project, a Chicago-based production studio. Pollies are the most prestigious award in political advertising, presented each year to winners voted on by a panel of industry judges.

The ad, which earned the prize in the Web Animation/Web Video Democrat category, was commissioned by Revolution, who wrote the script and tasked Mode Project with creating a video that would make the case for Jon Hincks candidacy in an engaging, attractive way that would stand out from the thousands of other political ads being run this cycle.

Jon Hinck is a very special candidate, and we needed an ad that would do justice to his experience and vision, explained Colin Rogero, Revolutions President. Thats why I went to Mode Project; they were able to take our script and turn it into a beautiful motion graphics piece that truly leaves an impression.

In addition to the Hinck video, Mode Project produced videos for several other political campaigns in the early stages of the 2012 election cycle, including Tammy Duckworths high-profile run to represent Illinois 8th Congressional District. Fueled, a Duckworth campaign ad, was devised by SnyderPickerill Media group, who tapped Mode Project for post-production services.

Modes creative contributions to our spots are invaluable, said Ken Snyder, Principal at SnyderPickerill. They are world class editors who do a great job helping our clients cut through the clutter of Americas biggest media markets.

The Duckworth spot helped the candidate decisively secure the Democratic nomination with 67% of the vote in her primary election. Other political clients this year include Theis for IL Supreme Court (also a SnyderPickerill client) and Konst for Congress (a Revolution client).

Its easy for political media to get overlooked as viewers are increasingly bombarded with the same stagnant messages over and over again, said Mode Project Executive Creative Director Colin Carter. Thats why its so important to deliver the message in a way that doesnt look like a standard campaign ad. Thats where we come in and help our clients to stand out and make an impact.

In 2007 and 2008, Mode Project was a trusted creative partner to the presidential campaign of Barack Obama, producing more than 200 broadcast ads, digital content pieces and long-form videos. The studio also directed the design and development of the Obama 08 campaign logo.

About Mode Project:

Mode Project is an award-winning production company working with some of the most recognized campaigns, brands and agencies in the world. Our clients turn to us for concept-through-delivery services that focus on creative content for a variety of platforms, including television, web and events. Since 2002, weve been pioneering new, more efficient ways of doing business that save our clients time and money. As a trusted creative partner to the Obama for America Media Team, Mode Project received the Cannes Lions Titanium Grand Prix and the Integrated Grand Prix awards.





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