Cambridge Associates: US venture capital index gains 21.1% in 2025, best year since 2021

• Cambridge Associates’ 2025 benchmark commentary showed US venture capital outperformed private equity, with index returns of 21.1% versus 8.7%.
• Growth equity led private equity, returning 11.9% versus 7.6% for buyouts, as elevated valuations persisted and fundraising slowed.
• Private equity LP distributions rose to $185 billion while capital calls fell to $145 billion, keeping distribution yield below historical averages.
• Venture capital cash flows improved, with capital calls at $61 billion and distributions at $42 billion, though distributions still lagged contributions since 2021.
• Technology drove allocations, with private equity investing 37% in IT; venture capital invested 51% in IT, reinforcing concentration risk.

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