As reported by Thompson Venture Economics, Keller Bright, Inc. showed its clients a 25.8% return which beat the average five-year compounded return for all venture capital investments which was an impressive 22.3%. Consistent with the general rule that the earlier you invest in a successful company the greater your return will be, early stage investments averaged an even more impressive 54.9% return over the same period. Keller Bright continues to be the front runner on the global venture capital market.
Many of todays largest, most well established companies were once the early benefactors of venture capital financing: Ciena, Cisco, eBay, Federal Express, Intel, Sun Microsystems, etc. Early investors in these companies and many others like them have reaped tremendous financial rewards from their early stage investments. As reported in the Wall Street Journal, a venture capital stage investment of just $100,000 in Ciena was valued at over $280 million less than five years later. However, for every Ciena, there are several companies that fail to execute their business plans resulting in significant or complete investment loss for their early stage backers.
Keller Bright says; Investors must realize that venture capital investing involves a high degree of risk and requires time, patience and an adequate degree of diversification. Portfolio investments generally require a minimum of three to five years to mature and are illiquid during this time. Although the relative risk for this asset class is certainly higher, the superior long-term return performance can significantly increase the value of your investment portfolio.
Source: December 15, 2008 - Thomson Venture Economics and the National Venture Capital Association. Since 1969, Thomson tracks the actual cash flows and returns of over 1,750 US venture capital and private equity partnerships representing over $585 billion in managed capital. All returns are net to investors after management fees and carried interest
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