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David Clark

CIO at VenCap International plc

David Clark is the Chief Investment Officer (CIO) at VenCap International plc, an Oxford-based independent investment advisory firm focused on venture capital fund investing.3 He has been with VenCap for over 32 years, making him an experienced and respected figure in the venture capital industry.2

Clark's career at VenCap includes:

  1. Current role as CIO24
  2. Previously served as Investment Director (July 2019 - Present)1
  3. Director of Fund Investments (March 1992 - Present)1

His responsibilities at VenCap include:

  • Developing investment strategy
  • Manager identification and selection
  • Marketing and client reporting
  • Driving the ESG agenda internally and across portfolio funds1

Clark has developed a strong network of venture capital managers across the US, Europe, China, India, and Israel.1 He has significant experience in marketing to potential investors across the UK, Europe, Middle East, and Australia.1

Education:

  • MA in Political Philosophy from the University of York (1990 - 1991)1
  • BA Hons in Philosophy & Politics from the University of Warwick (1987 - 1990)1

Additional qualifications:

  • UEFA A Licence in Coaching Football (issued June 2021)1

Clark is known for his insights on venture capital investing, often sharing his expertise through interviews and podcasts.25 He emphasizes the importance of understanding market dynamics, evaluating fund managers, and adapting to changes in the venture capital landscape.5

Highlights

Aug 19 · linkedin

Great report on VC fund performance just released by Peter Walker and Carta. However, investors need to be careful about how they interpret the data it contains. Some of the key points are discussed below:

  1. Median IRR for vintage years 2021 and 2022 below zero. Investors who only started committing to VC in the last five years may be alarmed by this. Don't be. It's the J-Curve. It just means that the market is getting back to normal after the ZIRP era of easy money and instant writeups.

  2. Median IRR in vintage year 2021 trails earlier vintages. See #1 above. 2017-2020 vintages had no J-Curve and were abnormal. Also, IRR metrics can be very misleading, particularly in the first few years of a fund's life. We don't pay any attention to IRRs until at least year five.

  3. Median TVPI is below 1.5x for 5 vintages. Building a world-class company takes time and there are no shortcuts. Typically it's 8-10 years between a company being founded and going public. This means that value creation usually develops over time, with much of the value coming in the last few years of a fund's life. The TVPI after 5 years is not an indication of where the fund will ultimately end up.

  4. Fewer funds in recent vintages have DPI. Within the VC industry, exits come in waves. There are long periods where nothing seems to happen, punctuated by short periods of intense liquidity and value creation. The IPO window has been shut since 2021 and it has been a struggle for large M&As to get approved. As such, it's no surprise that DPI has slowed for recent vintages. Again, this is not a good indicator of how funds might eventually perform. The key is to have companies that can ride the next liquidity wave, whenever it emerges.

  5. Q1 had the highest share of down rounds in the last 5 years. Around 60% of early-stage VC investments lose money, with 25% being complete write-offs. Loss ratios for 2012-2020 vintage funds had been running well below the long-term averages due to the weight of capital available. We are now seeing a reversion to the mean and there will be more write-offs and write-downs to come over the next few quarters. While painful for all concerned, this is healthy for the long-term prospects of the VC industry.

  6. Graduation rates for Seed to Series A have fallen. See #5. Again, this is just a reversion to the long-term mean.

Ultimately, this report is telling us that the VC market is moving back to a more normal state. This will be positive for long-term returns as long as investors can access the top 1% of companies that typically drive the majority of the performance generated by the VC industry globally. 

Full report available at

Mar 26 · linkedin

Loved sitting down with Harry Stebbings to talk all things venture capital.
https://lnkd.in/eyEvX8cU

Related Questions

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David Clark
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Location

Greater Oxford Area