Return to search

VC-backed stocks continue their slide in the new year

The Thomson Reuters’ Post-Venture Capital Index (PVCI) ended 2015 on a down note, and it started the new year singing the same tune.

The PVCI dropped 51.72 points to finish January at 675.95. It was the fourth consecutive monthly decline.

The Jan. 29 mark was also the lowest month-ending point for the PVCI since September 2011.

It’s no surprise, given that the PVCI typically swings with the fortunes of the Nasdaq and S&P 500 indexes.

At the end of January, the PVCI was comprised of 484 companies. Of the stocks tracked, only 78 advanced in value during the month while 406 declined. The number of companies in the index rises and falls, depending on new issues or as the companies fold or are acquired. Also, companies remain in the index for only 10 years.

A total of 89 of the declining stocks in December were in computer software and services, followed by 83 in the biotech sector.

Facebook remains the market leader, according to the PVCI, while the three top market laggards are Tesla MotorsEnergy Transfer Equity and Twitter.

To download an Excel file: PVCI as of Jan. 29, 2016

What is the PVCI?

The PVCI tracks VC-backed stocks beginning at the time when they go public. It is a market-valued index that measures the performance of public stocks of companies that have raised financing.

Companies remain in the index for 10 years from the IPO date or until price data is no longer available, they are acquired or removed from a publicly traded exchange.

The index is calculated daily and does not take into account dividends. It began in January 1986 with an initialized index value of 100.

Photo illustration from Shutterstock.

Monthly Index (January 2015 – January 2016)Monthly Index (January 2015 – January 2016)