SAN FRANCISCO, July 10, 2017 /PRNewswire/ -- SharesPost Research LLC, a wholly-owned subsidiary of SharesPost, Inc., a leading liquidity provider to the Private Technology Growth asset category, today launched the U.S. Private Growth Index ("the Index") to measure the quarterly performance of leading private growth companies.
Each quarter, the Index will state the percentage gain or loss in valuation for the companies included in the Index. The Index is currently composed of 87 private growth companies in multiple tech sectors, including Consumer Internet, Enterprise Software, Energy, Healthcare, and Financial Services. Companies in the Index must have been incorporated in the U.S. for at least three years and have met other requirements.
The Index's numerical value is based on a formula developed by SharesPost's research group. The Index relies on data from SharesPost Financial Corporation's secondary transactions, the Index companies' primary funding rounds and publicly available valuation marks, including the holdings of 75 publicly reporting mutual funds. Today's release of the Index incorporates data from more than 3,000 transactions and valuation marks. This pricing data is run through SharesPost's proprietary waterfall analytics to determine the enterprise value of the Index companies. SharesPost members can access these dynamic waterfalls from the SharesPost website.
The Index was initiated at a value of 100 as of Jan. 1, 2017. To provide a historical perspective, SharesPost created a hypothetical Index by applying the same methodology and eligibility criteria to 2015 and 2016. On a cumulative basis, the Index increased approximately 74.8% from Jan. 1, 2015 through March 31, 2017. This compares to an increase of 14.8% for the S&P 500 and an increase of 29.8% for the Dow Jones U.S. Technology Index. For complete disclosures and more details about the Index methodology, including the companies that comprise the Index, click here.
SharesPost Founder and CEO Greg Brogger: "As one of the largest marketplaces for shares of private tech growth companies, SharesPost is in a unique position to provide information and insight to investors. The U.S. Private Growth Index is another way we help make the private tech growth asset class transparent and investable."
SharesPost's Managing Director Rohit Kulkarni, who managed the development of the Index, said: "Just as the S&P 500 acts as a bellwether for corporate America, we believe the SharesPost Private Growth Index will be a barometer of the performance of late-stage, VC-backed, private tech growth companies."
The Index is the latest in a series of innovative research products from SharesPost for institutional and other accredited investors. SharesPost's trading platform provides a host of data and tools, including waterfall analysis and valuation modeling by share class and detailed insight into primary rounds. The SharesPost Research Group also provides research coverage of the asset category, including detailed comprehensive company reports, market sector analyses and industry overviews.
About SharesPost, Inc.
SharesPost helped launch the private market in 2009 and continues to lead and innovate in the space. Based in Silicon Valley, the SharesPost family of companies includes an SEC-registered broker-dealer, investment advisor and Alternative Trading System. SharesPost has also built the largest and most active platform for data, analysis and transactions. With more than $2 billion in closed transactions for more than 150 leading technology companies, SharesPost provides shareholders and buyers with the expertise and tools they need to transact in the private market with confidence. For more information, please visit www.sharespost.com.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements. These statements include, but are not limited to, statements about research on late-stage, venture-backed companies. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond SharesPost's control. These factors include, but are not limited to, factors detailed in the white paper. We undertake no obligation to release any revisions to any forward-looking statements.
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SOURCE SharesPost, Inc.