Overview
The Dow Jones Venture Capital Indexes℠ (view the video) are first-of-their-kind measures of the dynamic venture capital (VC) market.
Unlike the various VC indexes that track the performance of VC funds, the Dow Jones Venture Capital Indexes℠ measure changes in the value of venture capital-financed companies. Much like leading equity-market indexes, the indexes are market-capitalization weighted and continuously invested, meaning that as companies exit the index (due to an acquisition or IPO), any proceeds from the exit are re-distributed among the other company weights.
The transaction-level data used to calculate the indexes are sourced from Dow Jones VentureSource—the world's most comprehensive VC database. To further support the indexes' accuracy and timeliness, the VentureSource valuations are supplemented with interpolated valuations for periods between financing rounds and for those financing rounds where valuation information is not available.
The indexes were created based on a methodology originally developed by Sand Hill Econometrics, a leading provider of analytical tools for the private equity industry.
