Contrary to widespread misperceptions, UK venture capital funds have produced similar returns to those based in the US, according to research.
And between 2002-2006, UK VC funds actually outperformed US VC funds. If you invested a dollar in every UK VC fund pooled together over the five years, roughly speaking you would have got your money back plus one third compared with just breaking even with US VCs.
Although more recent UK VC funds are still playing out, between 2007 and 2011 indicators are that UK funds are keeping up with their US counterparts. So far, UK fund returns are lagging behind US fund returns by 30pc.