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Venture-backed stocks pull back a little

After three consecutive months of rising, the Thomson Reuters’ Post-Venture Capital Index (PVCI) scaled back slightly, dropping 8.83 points to end June at 906.22.

That’s a 10 percent drop from the month before when the PVCI stood at 915.05 at the end of May.

Still, the June 30 mark was the second-highest month-ending total this year for the PVCI.

At the end of June, the PVCI was comprised of 434 companies. Of the stocks tracked, 195 advanced in value during the month while 239 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 52 of the advancing stocks in June were in computer software and services and 30 were biotech. The largest group of decliners was also in the biotech sector, with 54.

Facebook continued to rank as the company with top market value, as of June 30.

Downloadable Data: PVCI as of June 30, 2016

What is the PVCI?

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.

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

Photo of a Wall Street sign outside the NYSE courtesy of Reuters/Carlo Allegri