In the fourth quarter of 2019, the SharesPost Private Growth Index – which tracks valuations for 106 private growth firms – increased by 6.3 percent to 136.0 from 128.0 at the end of the third quarter. By comparison, the S&P 500 was up 8.5 percent and the Dow Jones U.S. Technology Index was up by 14.1 percent during the same period. Private asset growth index was outperformed by public indices in Q4 2019.
For the full year of 2019, the SharesPost Private Growth Index increased 36.0 percent. By comparison, the S&P 500 and Dow Jones U.S. Technology Index both increased by 28.7 percent and 45.2 percent, respectively.
Since its launch on January 1st, 2017, the SharesPost Private Growth Index has increased 129 percent through December 31, 2019. By comparison, over the same period the S&P 500 and Dow Jones U.S. Technology Index have increased by 44 percent and 94 percent, respectively.
From January 1, 2015 to December 31, 2019, the SharesPost index increased approximately 291.8 percent; the S&P 500 rose 57 percent and the Dow Jones index increased 123 percent.
The key events affecting the Index’s performance during the fourth quarter of 2019 were:
(+) Upside drivers: Primary funding rounds during this period included Databricks (Series F), Freshworks (Series H), and Vroom (Series H).
There was one Initial Public Offerings (IPOs) during Q4/2019 of companies tracked in our 2019 Index – Bill.com
(-) Downside drivers: Downward pressure on the Index resulted primarily from events related to WeWork (postponed IPO and lowered valuation marks) and Uber (downround IPO).
SharesPost Private Growth Index is designed to be a proxy of the performance of a group of private growth companies, but is not illustrative of any particular investment. You cannot invest directly in the SharesPost Private Growth Index or any other index. Past performance is no guarantee of future results.
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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.
Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.
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