The Thomson Financial Post Venture Capital Index (PVCI) is a market-valued index that measures the performance of publicly traded companies that have received financing from a U.S. venture capital firm or buyouts limited partnership prior to going public. The index, which at present comprises 642 companies, seeks to track the universe of venture-backed stocks from the point of going public until publicly traded for 10 years. Companies are taken off the index after 10 years, or if they are acquired, merged to form a new corporate entity, or are removed from a publicly traded exchange.
The PVCI is calculated daily and does not take into account dividends. It began in January 1986 with an initialized index value of 100. As of Feb. 28, its index value stood at 712.66, down from 724.8 on Jan. 31. The overall stock market took a hit on Feb. 27, with the Dow Jones Industrial Average plummeting by 416 points, its biggest one-day drop since its 685-point loss on Sept. 17, 2001.
Separately, the PVCI had a market capitalization of $715.47 billion on Feb. 28, down 1.7% from $728.1 billion on Jan. 31. —Lawrence Aragon