Short-term returns are weighing down long-term track record Not surprisingly, the highly visible impact of 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 con- sequence of increased down rounds, write-offs, and markdowns re昀氀ecting in the data. This undoubtedly makes for painful, if not unexpected reading for investors. 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, beat- ing benchmarks from US VCs, European buyout, and public equities. Horizon pooled return (net) by fund index, June 2023 2023 MSCI Europe Index 2023 Europe Developed Private Equity Index 2023 US Venture Capital Index 2023 Europe Developed Venture Capital Index 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. | 24