Short-term returns hit, but long-term outperformance As expected, the market reset is mirrored in the short-term performance of venture capital. One-year VC returns are now well into negative territory in both Europe and the US, as a consequence of increased down rounds, write-offs, and markdowns re昀氀ecting in the data. In VC, however, what matters is the long-term perspective, given that returns take 10 years or more to be realised. In this regard, European VCs have consistently delivered outperformance over two decades, at least matching or, in most cases, beating benchmarks from US VCs, European buyout, and public equities. Horizon pooled return (net) by fund index, June 2023 2023 MSCI Europe Index 30 2023 Europe Developed Private Equity Index 2023 US Venture Capital Index 2023 Europe Developed Venture Capital Index 20 10 0 -10 -20 20 Year 15 Year 10 Year 5 Year 3 Year 1 Year Notes: Data is as of 30 June 2023. MSCI Europe Index is Sources: derived from the CA Modified Public Market Equivalent (mPME), which replicates private investment performance under public market conditions. 209 | Fundraising