SharesPost: Private Tech Growth Companies Post Strongest Quarterly Gain In Three Years

Reflecting the continuing strength of the private tech growth asset
class, valuations of late-stage, venture-backed tech companies jumped 8%
in the first quarter, the largest quarterly increase since 2015,
according to the SharesPost
U.S. Private Growth Index.

“The private tech growth asset class is enjoying a bull market as
demonstrated by a variety of key metrics,” said Managing Director Rohit
Kulkarni, Head of Research for SharesPost, Inc. “Valuations are
rising, the IPO window is wide open, and M&A activity is very strong.
These conditions bode well for remainder of 2018.”

The Index, which tracks 106 companies, rose to 128.0 as of March 31,
2018 from 118.5 as of December 31, 2017 – an 8% increase in the total
valuation. The Q1 2018 gain compares to a 1.2% decline in the S&P 500
and a 3.4% increase in the Dow Jones U.S. Technology Index.

Since the launch of the Index on January 1, 2017, the valuations of
private growth companies have increased 28% through March 31, 2018,
surpassing S&P 500’s 18% rise but trailing the 40% increase in Dow Jones
U.S. Technology Index during the same period.

Preliminary Q2 2018 data indicate that the Index continues to outperform
benchmark indices amid signs the bull market is stalling.

On a cumulative basis, the Index has increased 119.25% from January 1,
2015 through March 31, 2018, compared to an increase of 28.3% for the
S&P 500 and an increase of 61.7% for the Dow Jones U.S. Technology Index.

To find out more about the drivers of growth in the first quarter, click here.

About the SharesPost U.S. Private Growth Index

Each quarter, the Index states the percentage gain or loss in valuation
for the companies included in the Index. The Index is currently composed
of U.S.-based private growth companies in multiple tech sectors,
including Consumer Internet, Enterprise Software, Energy, Healthcare and
Financial Services. There are 106 companies in the Index as of March 31,
2018, compared to 87 companies as of Jan 1, 2017. The cumulative market
capitalization of the companies in the index has increased from $317
billion at the beginning of 2018 to $325 billion at the end of the first
quarter of 2018. Median market cap of the companies in the Index has
increased to $1.21 billion.

The Index’s numerical value is based on a formula developed by
SharesPost Research LLC, a wholly owned subsidiary of SharesPost, Inc.
The Index relies on data from SharesPost Financial Corporation’s
secondary transactions, the Index companies’ primary funding rounds and
publicly available valuation marks, including the holdings of 75
publicly reporting mutual funds. For complete disclosures and more
details about the Index methodology, including the companies that
comprise the Index, click here.

About SharesPost, Inc.

SharesPost is a FINRA -registered broker-dealer, SEC-registered
Alternative Trading System and Registered Investment Advisor. SharesPost
helped launch the secondary market for private tech companies in 2009
and has built one of the leading platforms for secondary transactions
and digital securities. SharesPost provides the private tech asset class
with a suite of trading and lending solutions to facilitate shareholder
and option holder liquidity. With more than $4 billion in secondary
market transactions in the shares of more than 200 leading technology
companies, SharesPost provides the trading, research and online tools to
transact in the private market with confidence. For more information,

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements. These
statements include, but are not limited to, statements about research on
late-stage, venture-backed companies. We caution that these statements
are not guarantees of future performance. Actual results may differ
materially from those expressed or implied in the forward-looking
statements. Forward-looking statements involve a number of risks,
uncertainties or other factors beyond SharesPost’s control. We undertake
no obligation to release any revisions to any forward-looking statements.

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