In the first quarter of 2019, the SharesPost Private Growth Index — which tracks valuations for 106 private growth firms — increased by 9.3 percent to 183.8 from 168.2 at the end of 2018. By comparison, both the S&P 500 and the Dow Jones U.S. Technology Index were up 13.1 percent and 19.3 percent respectively during the same period. Private asset growth was marginally outperformed by public indices in Q1/2019.
Since its launch on January 1, 2017, the SharesPost Index has increased 83.78 percent through March 31, 2019. By comparison, the S&P 500 increased 26.6 percent whereas the Dow Jones U.S. Technology Index increased 58.48 percent during the same period.
Early indications from Q2 2019 data through May suggest the index has continued to perform well in 2019: from the beginning of the year through May 31, the SharesPost Index has increased 12.5 percent. By comparison, both S&P 500 and Dow Jones U.S. Technology Index have increased by 9.6 percent and 14.6 percent respectively.
On a cumulative basis from January 1, 2015 to May 31, 2019, the SharesPost Index increased approximately 244 percent; the S&P 500 rose 33.7 percent and the Dow Jones Index increased 76.3 percent.
Key events affecting the Index’s performance during the first quarter of 2019 include:
(+) Upside drivers: Primary funding rounds during this period included Casper (Series D), Databricks (Series E), DoorDash (Series F), Medallia (Series F), Opendoor (Series E-2), Postmates (Series F), SpaceX (Series J), Reddit (Series D), Desktop Metal (Series E), Rubrik (Series E), and Acorns (Series E-1).
On average, the valuation of the eleven companies that completed a primary funding round during Q1/2019 increased by 82 percent.
There was one Initial Public Offering (IPO) during Q1/2019 of companies tracked in our 2019 Index —Lyft, the first unicorn IPO of the year.
There were two M&As during Q1/2019 of companies tracked in our 2019 Index: Auris Health and Cylance.
(-) Downside drivers: We did not track any notable down round fundings during Q1/2019.
Amongst the index companies, there have been a total of three exits through March 31, 2019, either via an IPO or M&A, averaging approximately one per month.
The index was rebalanced for 2019 with the removal of eleven exited companies and the addition of eleven new ones. The cumulative implied valuation of the 106 private growth companies in the Index stood at 385.5 billion during the 1st quarter of 2019, and the median implied valuation of the same segment was 1.2 billion.
Companies added to the Index in 2019:
Companies removed from the Index in 2018:
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Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.
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