Funding insights agency Morningstar and personal markets analysis agency PitchBook launched a brand new index that tracks 30 of the biggest and most liquid late-stage enterprise capital corporations globally. Referred to as Morningstar PitchBook Unicorn 30 Index (UI30), it tracks VC-backed corporations valued at $1 billion or extra, together with SpaceX, Open AI, Stripe and SHEIN.
The index is supposed to assist buyers measure and entry the late-stage VC market. Will probably be calculated each day utilizing a pricing mannequin combining precise transaction information from secondary market worth aggregator Caplight and different funding platform Zenbato. PitchBook’s database will present key company-level information, together with funding rounds, powering the pricing mannequin, whereas Morningstar will likely be chargeable for index building.
The index will use screens to handle liquidity challenges and will likely be reconstituted and rebalanced each quarter.
Based on Sanjay Arya, head of innovation at Morningstar Indexes, the marketplace for late-stage VC corporations valued at $1 billion or extra has grown from two or three dozen companies a decade in the past to about 1,500 companies at this time, with a complete market valuation of about $5 trillion. Since these corporations keep personal longer (a median of 12 years), they entice new sorts of buyers, together with hedge funds, mutual funds and personal wealth managers seeking to create entry factors for his or her retail shoppers to spend money on these ventures.
“It’s an enormous market… And the market is starting to behave extra like a hybrid market versus a personal market, the place there are much more transactions taking place as nicely,” stated Arya. “It’s a matter of time earlier than retail buyers get entry to this. Our aim is to make this market extra clear, in order that’s our main motivation for creating this index.”
Based on an announcement from Rob Diefendorf, president and chief working officer of PitchBook, “Because the personal markets proceed to develop into extra distinguished and influential, PitchBook is the pure chief to drive higher understanding of market exercise and allow entry to personal market funding alternatives to a large investor base. Transparency is essential to driving this momentum, and indexes like this play a vital function in fueling innovation, supporting entrepreneurship and driving market progress.”
