Tracking the value of private companies with this new index

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 69 sec. here
  • 7 min. at publisher
  • 📊 Quality Score:
  • News: 45%
  • Publisher: 63%

David Shapiro News

NYSE,Julie Hyman,Private Companies

The NYSE OPEN Venture Capital Unicorn Index (^NYSEOVC) tracks the daily valuations of private companies, the five in the index being SpaceX, OpenAI...

"There are folks who've been trying to create indices out there who rely primarily on fundraising data," Shapiro explains."We took a different approach and what we've done is worked with ICE, the NYSE parent company , to create a methodology that incorporates real secondary transaction data. So we understand where these companies are trading in the secondary on a daily basis. And using that significant breadth of data can actually price them on a daily basis.

Now, there are folks who've been trying to create indices out there who rely primarily on fundraising data and they'll say something like, hey, a large company raised a big round a few years ago. And so when a company IPO is, we actually will hold it in the index for 180 days to mimic the kind of lock up period that you would be subject to if you were an institutional grade holder in that private company.We believe in the trend of passive management and our goal eventually is to launch listed products.

And so stage one is, you know, launch this index, make sure the pricing is accurate, trusted, start giving folks the insights, they need to make critical investing decisions and then eventually launch an ETF what's the any timeline there, David?Um And I also, you know, you talked about the methodology of how you guys are getting the secondary market data.Is it because it's through ice and you have this partner?Usually there isn't ice is a big, big part of it.

Um We have seen over really the last 12 months, a big shift into investors, really wanting to move into anything that A I is touching.Uh open A I up 30% year over year and actually the index broadly up almost 24% year over year, largely because of A I but SpaceX and I guess transportation, logistics still number one.How did this come to be uh a lot of work.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 47. in BUSÄ°NESS

Business Business Latest News, Business Business Headlines