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Fund Structure

Vintage Year

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Quick Answer

The year a VC fund made its first investment — used to benchmark fund performance against peer funds of the same vintage.

Vintage year is the year a VC fund closes and begins deploying capital into investments. It's used to group and benchmark funds against their peers: a 2018 vintage fund should be compared to other 2018 vintage funds (not 2021 vintage funds that benefited from a bull market). Vintage year matters because market conditions at time of investment significantly impact fund performance. 2008-2009 vintage funds (investing during the financial crisis) produced exceptional returns — they bought into companies at depressed valuations before a decade-long bull market. 2021 vintage funds (investing at peak valuations) have faced a much harder environment. LPs and benchmarking services like Cambridge Associates organize performance data by vintage year to enable apples-to-apples comparison.

Careers That Use This Term

This concept is especially relevant for these venture capital roles:

Frequently Asked Questions

What is Vintage Year in venture capital?

Vintage year is the year a VC fund closes and begins deploying capital into investments. It's used to group and benchmark funds against their peers: a 2018 vintage fund should be compared to other 2018 vintage funds (not 2021 vintage funds that benefited from a bull market).

Why is Vintage Year important for startups?

Understanding Vintage Year is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.

What category does Vintage Year fall under in VC?

Vintage Year falls under the fund-structure category in venture capital. This area covers concepts related to how venture capital funds are organized, managed, and governed.

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