Venture capital performance showed positive returns across all investment horizons ending September 30, 2007, according to Thomson Financial and the National Venture Capital Association.

The one-year private equity performance index (PEPI) showed the greatest increase from the period ending Q2 2007, with an 8.8 point increase to 32.3% in Q3 2007. Oftentimes, short-term horizons show significant fluctuations quarter over quarter based on large exits impacting the return. The next largest increase from Q2 2007 to Q3 2007 occurred in the five-year time horizon where PEPI increased by 1.9 points quarter over quarter. Ten year performance, the time horizon with the largest period over period decline, showed a decrease from 19.3% to 17.9% in Q3 2007. Three-year and twenty-year performance figures remained virtually unchanged at 10.4% and 16.4%, respectively.

The 10 and 20 year time horizons continue to significantly out-perform the public markets across all venture capital fund types.

"The third quarter 2007 performance numbers are consistent with an asset class that benefited from improving exit markets during the year, but still had to contend with losses earlier in the decade," said Mark Heesen, president of the NVCA. "We expect these numbers to continue to trend positive for at least the next quarter as this past year saw some strong IPO's and acquisitions that will support higher returns in the short run. We continue to keep our eye on the economy in 2008 as the threat of a recession could stall the venture capital exit market -- and that could impact returns negatively."