Index Climbs More Than 40 Percent in 2018, but prevailing sentiment points toward a correction.
SHREVEPORT, La.–(BUSINESS WIRE) –The Prime Unicorn Index, the first index to track the share price performance of privately-funded U.S. companies, announced today its quarterly reconstitution. The index, which gives equal-weighting to its constituents, has added seven companies that qualify as Unicorns or Approaching Unicorns, while three companies have left the index – two had successful IPOs and one was acquired.
Companies qualify as Unicorns when they have a valuation of $1 billion or more, while companies that have achieved $500 million valuations are classified as Approaching Unicorns, and are also included in the Prime Unicorn Index.
Reconstitution of the index relies heavily on Lagniappe Labs’ proprietary research and difficult-to-source, objective data to determine true valuations of privately-funded companies in a measurable and verifiable way.
The companies added to the index include Rubrik, Plaid, Toast, Allbirds, Netskope, Upgrade and Venafi. Falling out were Twist Bioscience and Eventbrite, which went public , and GitHub, which was acquired. The reconstitution was effective at market close on Jan. 17, 2019.
“The Prime Unicorn Index serves to benchmark the performance of private companies in line with how the S&P 500 Index tracks publicly traded companies,” said Ross Barrett, CEO and founder of the Index. “While we have become a primary resource for media and investors to help them better understand how to assign the true valuation of private companies, the real attraction of the Index are the trading opportunities it presents to institutional investors.
“These investors, which are typically pension, hedge and endowment funds, increasingly recognize that valuations in the private markets may be excessive and are looking for ways to offset exposure they may have with regard to direct investments in the private markets.
“That’s one of the attractions of the Index in that institutional investors have a unique opportunity to access a fair representation of the private markets and make an investment on its future, whether they want to go long or short.”
While a bet at the beginning of 2018 to the end of 2018 would have yielded a 40 percent plus return, the cacophony of skepticism is building as evidenced by these recent stories:
For more information, please visit PrimeUnicornIndex.com. To explore licensing opportunities regarding the Index, call (646) 429-0949.
About The Prime Unicorn Index
The Prime Unicorn Index is an equally-weighted price return index that measures the share price performance of U.S. private companies valued at $500 million or more. The price changes of component companies are derived from publicly available information associated with company transactions, filings, and other disclosures. The index provides empirical data to asset managers and financial advisors interested in tracking today’s private capital markets. The index is designed for use in the creation of financial products and as a performance benchmark. The Bloomberg Ticker is PUNICORN, while the Reuters Ticker is .PUNICORN
About Lagniappe Labs
Lagniappe Labs uses state, federal and difficult-to-acquire corporate filings in a fully configurable platform that allows users to analyze the value of privately held companies. The technology provides tools and data to build financial models on specific sectors, people, industries, investors and more. Lagniappe Labs federates disparate sources of information to drive objective analysis on private company investments.