SAN FRANCISCO--(BUSINESS WIRE)--Private growth companies outperformed the S&P 500 and the Dow Jones U.S. Technology Index in the second quarter of 2017 for the first time in almost two years, according to the SharesPost U.S. Private Growth Index.
“It’s too early to tell whether this is an inflection point, but the Index clearly staged a rebound in the second quarter,” said SharesPost Managing Director Rohit Kulkarni, Head of Research.
The Index rose from 102.05 as of March 31, 2017 to 107.34 as of June 30, 2017 – a 5.2% rise in the valuation of the 87 private growth companies in the Index. This Q2 2017 gain compares to a 2.6% increase in S&P 500 and 3.4% increase in the Dow Jones U.S. Technology Index.
On a year-to-date basis, through June 30, 2017, private company valuations have risen 7.3% according to the Index, compared to an 8.2% increase for S&P 500 and 16.3% increase for the Dow Jones U.S. Technology Index. Preliminary data from July and August implies that the Index has lagged in performance in Q3 versus the continued bull-market rally in the public markets.
On a cumulative basis, the Index is up 83.9% from Jan. 1, 2015 through June 30, 2017, compared to an increase of 17.7% for the S&P 500 and an increase of 34.2% for the Dow Jones U.S. Technology Index.
About the SharesPost U.S. Private Growth Index
Each quarter, the Index states the percentage gain or loss in valuation for the companies included in the Index. The Index is currently composed of U.S.-based private growth companies in multiple tech sectors, including Consumer Internet, Enterprise Software, Energy, Healthcare and Financial Services.
The Index’s numerical value is based on a formula developed by SharesPost Research LLC, a wholly owned subsidiary of SharesPost, Inc. 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. For complete disclosures and more details about the Index methodology, including the companies that comprise the Index, click here.
About SharesPost, Inc.
SharesPost helped launch the private tech growth market in 2009 and continues to lead and innovate in the space. Based in Silicon Valley, SharesPost is an SEC-registered broker-dealer, investment advisor and Alternative Trading System. SharesPost has built one of the largest and most active platform for data, analysis and transactions. With nearly $3 billion in closed transactions for more than 180 leading technology companies, SharesPost provides shareholders and buyers with the trading, research and online tools to transact in the private market with confidence. For more information, please visit 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.