Key Takeaways
- • Union Square Ventures delivered a 59% combined internal rate of return (IRR) across seven funds to the University of Texas endowment (Utimco), generating $1.2 billion in distributions on a $130 million investment as of November 2022.
- • USV's 2004 vintage fund achieved a 66% IRR, returning $305 million from a $22 million Utimco commitment, driven by early bets on Twitter, Zynga, and Tumblr.
- • The 2012 vintage fund returned $592 million from a $25 million investment with a 53% IRR, substantially supported by an early 2013 position in Coinbase.
- • Even USV's underperforming 2008 fund generated a 21% IRR and $96 million in returns on a $23 million investment, demonstrating consistent outperformance across the fund portfolio.
- • USV's track record substantially outpaces peer venture firms in Utimco's $6 billion venture portfolio, including notable underperformance from Sequoia and Y Combinator in recent periods.
Summary
Union Square Ventures has demonstrated exceptional venture capital performance over the past decade, according to private investment returns obtained by Business Insider through a public-records request to Utimco, which manages the $65 billion combined endowments of the University of Texas and Texas A&M systems.
Across seven funds, USV has delivered a combined 59% IRR to Utimco on a $130 million cumulative investment, generating over $1.2 billion in cash distributions. This performance substantially exceeds typical venture capital benchmarks and places USV in the highest tier of venture firms, particularly when measured against other holdings in Utimco's $6 billion venture portfolio.
The firm's flagship 2004 fund stands as one of the industry's best-performing vehicles, returning $305 million on a $22 million Utimco commitment with a 66% IRR. This fund capitalized on early, high-conviction positions in Twitter, Zynga, and Tumblr during the critical growth phases of these platforms. The 2012 vintage fund similarly excelled, delivering a 53% IRR and $592 million in distributions from a $25 million investment, with returns substantially driven by an early 2013 bet on Coinbase, which became a major crypto exchange.
Notably, USV's portfolio demonstrates consistent quality across vintages. The firm's weakest-performing fund from 2008 still generated a 21% IRR and $96 million in absolute returns on a $23 million investment—a result that exceeds many competitors' average performance. Founded by Fred Wilson and Brad Burnham in New York City in 2003, USV has backed over 130 startups and maintained a reputation as a top-tier venture firm, with this performance data providing quantitative validation of that standing within the institutional investment community.
Across seven funds, USV has delivered a combined 59% IRR to Utimco on a $130 million cumulative investment, generating over $1.2 billion in cash distributions. This performance substantially exceeds typical venture capital benchmarks and places USV in the highest tier of venture firms, particularly when measured against other holdings in Utimco's $6 billion venture portfolio.
The firm's flagship 2004 fund stands as one of the industry's best-performing vehicles, returning $305 million on a $22 million Utimco commitment with a 66% IRR. This fund capitalized on early, high-conviction positions in Twitter, Zynga, and Tumblr during the critical growth phases of these platforms. The 2012 vintage fund similarly excelled, delivering a 53% IRR and $592 million in distributions from a $25 million investment, with returns substantially driven by an early 2013 bet on Coinbase, which became a major crypto exchange.
Notably, USV's portfolio demonstrates consistent quality across vintages. The firm's weakest-performing fund from 2008 still generated a 21% IRR and $96 million in absolute returns on a $23 million investment—a result that exceeds many competitors' average performance. Founded by Fred Wilson and Brad Burnham in New York City in 2003, USV has backed over 130 startups and maintained a reputation as a top-tier venture firm, with this performance data providing quantitative validation of that standing within the institutional investment community.
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