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Venture Capital


PITCHBOOK INDEXES

November 9, 2022 View comment (1)


As the convergence of public and private markets continues to accelerate, the
need for relevant and timely pricing insights is crucial for private market
participants to contextualize the performance of their newly public holdings. In
addition, LPs and GPs alike can leverage these tools to gauge how valuation
shifts in the public markets may affect their private market holdings. 

PitchBook and Morningstar have developed a suite of indexes designed to track
the performance of companies that have either recently transitioned from the
private to the public markets or are unicorns (defined as companies with a
post-money valuation greater than $1 billion) that may be entering the public
market soon. 

The current set of indexes include:

 * Formerly VC-backed IPOs
 * Formerly PE-backed IPOs
 * Private companies having entered the public markets via a SPAC
 * Unicorns across various geographies

 

(Note: Viewing on desktop is recommended for optimal quality)
 


METHODOLOGY AND ADDITIONAL RESOURCES

 * Unicorn indexes are calculated using a proprietary model developed by
   Morningstar in conjunction with PitchBook. Morningstar’s daily pricing
   methodology allows us to track the value of unicorns with an unprecedented
   timeliness. Read more here.
 * PitchBook IPO indexes are updated daily and reflect the prior day's close. If
   new data is unavailable, the most recent value is forward-filled.
 * Every PitchBook IPO index constituent included is listed on the NYSE and
   NASDAQ, regardless of company headquarters location.
 * Public companies must debut with a post-money valuation of more than $50
   million to be considered for inclusion in PitchBook’s IPO Indexes.


RECONSTITUTION FOR PITCHBOOK IPO INDEXES

 * Newly listed companies that fit the criteria are included beginning the first
   day of the quarter after they exit via IPO, and continue to be included until
   the first day of the quarter after they have been trading for two years. For
   instance, a company that completed an IPO in February 2018 would be included
   starting at the March 2018 rebalance and dropped out at the March 2020
   rebalance.
 * In addition to normal deletions from aging out of the two-year window
   criteria, companies will also be removed from the index following an
   acquisition or bankruptcy or if their market cap falls below $50 million at
   any rebalance. If the event falls in the middle of the quarter, these
   companies are removed at the next rebalance date.
 * Companies can be added to the index on a more expedited basis: If a company
   falls in the 95th percentile market cap of companies in the index, it will be
   added the day after its IPO.
 * All index weights are rebalanced quarterly or in the event of an interperiod
   addition or deletion.


CLICK THE LINKS BELOW FOR FURTHER DETAILS ON:

DeSPAC Index
Venture Capital Backed IPO Index
Morningstar PitchBook Global Unicorn Indexes

Featured image by Drew Sanders/PitchBook
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Tags:
 * Venture Capital
 * Private Equity
 * IPO
 * SPAC


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View comment (1)
Jon Labovitz June 15, 2022 at 7:17 PM
Is there a list of the DeSPAC companies?
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