The Sand Hill Index of Venture Capital is the first and only index of value for venture-funded companies.
The index is constructed to answer the same question for venture capital as are the indexes of the stock market: that is, to reveal the return, and volatility, for any span of time, to investors with a value-weighted, continuously-invested portfolio. The Sand Hill Index of Venture Capital is the private company analog of a market-wide index such as the Dow Jones Total Stock Market Index.
The index is built adhering to the principles of modern index construction, to be continuously-invested and value-weighted, and of course, free of bias, including survivor bias.
The data behind the index comprise roughly 77,000 valuation events for 25,000 companies. The methods used to calculate the index address the two central problems for building such an index – intermittent pricing of companies and the bias in shared information.
- Continuously invested and value-weighted
- Uses the VentureSource database, which covers close to 100% of the venture universe since 1991
- Returns are calculated for each month, but the index is updated quarterly
- Free of survivor bias
- Vintage year, region and sector sub-indexes available