PrEQIn Index: Venture Capital by Investment Stage as of 30 June 2013

by Emma Underwood

  • 03 Jan 2014
  • PE
  • VC

The PrEQIn Private Equity Quarterly Index is the first index covering the whole of the private equity industry, and allows investors to compare the returns of their private equity portfolios to those from other asset classes. In addition to an overall private equity index, Preqin also calculates indices for the various subsectors of the industry, including venture capital funds by investment stage. 

The PrEQIn Venture Capital Index split by investment stage is rebased to 100 as of 31 December 2000, and reveals the relative performance of early stage (PrEQIn Early Stage) and late stage/expansion funds (PrEQIn Expansion), in comparison to venture capital funds that have no specific investment stage focus (PrEQIn Venture All Stage). 

All indices show initial quarterly declines in the early 2000s as a result of the dot-com crash. However, the PrEQIn Expansion Index rebounded fairly swiftly, experiencing steady quarterly increases from Q4 2002, growing to over 100 in Q2 2006, and peaking at 128.8 in Q4 2007. After falling to 109.7 a year later as a result of the financial crisis, the PrEQIn Expansion Index has increased steadily, excluding a small dip in Q3 2011. The index now stands at its highest point of 174.6, up from 166.5 as of 31 March 2013. 

In contrast, the PrEQIn Early Stage and PrEQIn Venture All Stage Indices did not recover in the same way following the dot-com crash in the early 2000s, and continued to fall to 44.8 and 37.7 respectively by Q3 2003. Since then, the two indices have remained relatively flat, showing small but steady signs of recovery in the past few years. In spite of this, the PrEQIn Early Stage and PrEQIn Venture All Stage indices only reached their highest points in Q2 2013, at 72.5 and 60.8 respectively. 

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