Venture-backed stock index ends 2016 up one-third over the year

The Thomson Reuters’ Post-Venture Capital Index (PVCI) rose nearly 33 percent last year to finish up at 966, a gain of more than 238 points in 2016 from the 727.67 mark at the start of the year.

The Dec. 30 total was the highest year-end total for the PVCI since December 2013 when it stood at 1067.84.

However, for the month of December, the PVCI dropped 17 points, or nearly 2 percent from the 983.05 total at the end of November. The month-ending high point for the PVCI last year came at the end of September when it stood at 990.77.

At the end of December 2016, the PVCI was comprised of 371 companies. Of the stocks tracked, 164 advanced in value during the month while 207 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 28 of the advancing stocks at the end of last year were in computer software, while 26 were in biotech. The largest group of decliners was also in the computer software and services sector with 52.

The mammoth Facebook continued to rank as the company with top market value, as of Dec. 30, more than five times the second place Kinder Morgan.

The PVCI measures the performance of public stocks, tracking VC-backed companies beginning at the time when they go public.

Companies remain in the index for 10 years from the IPO launch 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.

Editor’s note: VCJ has not posted the PVCI for the previous two months as a result of a data collection error.

Monthly Index (December 2015 – December 2016)PVCI vs. Nasdaq and S&P500

Downloadable Data: PVCI as of Dec. 30, 2016

Photo of taxi cabs driving past the Nasdaq MarketSite in New York’s Times Square, Aug. 23, 2013 courtesy of Reuters/Andrew Kelly