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Venture capital returns could continue slide

The values of venture funds kept shrinking, while the stock market was on the upswing

Several factors could boost venture performance this year, such as the Federal Reserve lowering interest rates, which would make riskier investments like venture capital more attractive
Several factors could boost venture performance this year, such as the Federal Reserve lowering interest rates, which would make riskier investments like venture capital more attractive Photo: Celal Gunes/Getty Images

Venture capital returns declined in the first three quarters of last year, as the venture market continued to digest all it overbought at the market peak a couple of years ago.

The performance of global venture funds decreased 3.4% in the first nine months of 2023, according to research firm Preqin. The Nasdaq Composite Index rose 26.3% over the same period.

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