[January 04, 2018]

Private Growth Companies Outperform S&P 500 In Third Quarter Of 2017, According To SharesPost Index

Private growth companies rose 4.9% in the third quarter of 2017, outperforming the S&P 500 for the second consecutive quarter, according to the SharesPost U.S. Private Growth Index.

"The good times keep rolling for private growth tech companies," said Managing Director Rohit Kulkarni, Head of Research for SharesPost, Inc. "The Index posted its second straight quarterly increase and again outperformed the S&P 500. Preliminary Q4 data indicate that valuations are flattening, but overall, the private tech growth asset category continues to perform well."

The Index rose from 107.34 as of June 30, 2017 to 112.63 as of September 30, 2017- a 4.9% increase in the valuation of the 87 private growth companies in the Index. The Q3 2017 gain compares to a 4.0% increase in the S&P 500 and a 7.4% increase in the Dow Jones U.S. Technology Index.

On a year-to-date basis through September 30, 2017, the 12.6% increase in private company valuations almost equaled the 12.5% increase in the S&P 500. The Index trailed the 24.8% increase in the Dow Jones U.S. Technology Index. Preliminary Q4 2017 data indicate that the Index has lagged the erformance of public market equities, which are benefitting from the continuing bull market.

On a cumulative basis, the Index is up 92.9% from January 1, 2015 through September 30, 2017, compared to an increase of 22.4% for the S&P 500 and an increase of 44.1% for the Dow Jones U.S. Technology Index.

The Q4 Index is due out in early April.

About the SharesPost U.S. Private Growth Index

Each quarter, the Index states the percentage gain or loss in valuation for the companies included in the Index. The Index is currently composed of U.S.-based private growth companies in multiple tech sectors, including Consumer Internet, Enterprise Software, Energy, Healthcare and Financial Services.

The Index's numerical value is based on a formula developed by SharesPost Research LLC, a wholly owned subsidiary of SharesPost, Inc. The Index relies on data from SharesPost Financial Corporation's secondary transactions, the Index companies' primary funding rounds and publicly available valuation marks, including the holdings of 75 publicly reporting mutual funds. For complete disclosures and more details about the Index methodology, including the companies that comprise the Index, click here.

About SharesPost, Inc.

Based in Silicon Valley, SharesPost is an SEC (News - Alert)-registered broker-dealer, investment advisor and an approved Alternative Trading System. SharesPost helped launch the private tech growth market in 2009 and has built one of the leading platforms for secondary transactions and Initial Coin Offerings pursuant to Reg. D. With nearly $3 billion in secondary market transactions for more than 180 leading technology companies, SharesPost provides shareholders and buyers with the trading, research and online tools to transact in the private market with confidence. For information, visit sharespost.com.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein contain forward-looking statements. These statements include, but are not limited to, statements about research on late-stage, venture-backed companies. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond SharesPost's control. These factors include, but are not limited to, factors detailed in the white paper. We undertake no obligation to release any revisions to any forward-looking statements.

View source version on businesswire.com: http://www.businesswire.com/news/home/20180104005380/en/

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