|
Sand Hill Econometrics has licensed its methods for building an index for venture capital to Dow Jones. The former Sand Hill Index is now published by Dow Jones as the Dow Jones Index of Venture Capital and built with data from Dow Jones’ VentureSource.
The standard index is constructed to be continuously-invested and value-weighted, analogous to indexes for the stock market such as the Dow Jones Total Stock Market Index (formerly the Wilshire 5000).
We can also construct indexes by industry, by geography, by stage of investment, and by vintage year. All are weighted by the value of the venture-funded companies. We and Dow Jones will soon be able to also offer indexes weighted by the share of value owned by the limited partner investors.
The Dow Jones Venture Capital Index can be used to measure the risk of all venture capital, as well as for the major subsectors, relative to the stock market. They are also useful for comparing the risk of your venture capital relative to all venture capital.
|