The Thomson Reuters’ Post-Venture Capital Index (PVCI), whose fortune typically swings with the Nasdaq and S&P 500 indexes, dropped more than 53.13 points in September to end the month at 806.22.
The PVCI, which has fallen four consecutive months, has not dipped this low since December 2012 when it stood at 807.27. While the overall stock market took a hit in the summer, as China’s turmoil was largely to blame for the global market sell-off, the PVCI has not bounced back up since then. The index may still gain in value before the end of the year.
At the end of September, the PVCI was comprised of 500 companies. Of the stocks tracked, only 121 advanced in value during the month while 379 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 83 of the declining stocks were companies in the computer software and services sector. Biotech, which had been enjoying a resurgence lately, also had a high number of decliing stocks with 72 losing value.
Computer software and services also saw the most advancers, with 14.
To download an Excel file: PVCI as of Sept. 30, 2015
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.