updated 2/23/2011 9:47:09 AM ET 2011-02-23T14:47:09

NEW YORK, Feb. 23, 2011 (GLOBE NEWSWIRE) -- Dow Jones Indexes, a leading global index provider, today announced the latest performance data for the Dow Jones U.S. Venture Capital Index. The index is designed to measure changes in the market value of venture capital-financed companies in the United States.

As of September 30, 2010, the index value was 1,455.12,1 up 20.4% from June 30, 2010. Over the same time period, the Dow Jones U.S. Total Stock Market Index rose 11%.

"Venture index values are usually driven by the value of companies exiting during the quarter," said Susan Woodward, an economist and the founder of Sand Hill Econometrics.  "However, this quarter's total index value is significantly affected by the Facebook round of funding in December 2010.  Thus, despite being a fourth-quarter event, Facebook influenced third-quarter values. Overall, the third quarter was a good one for venture capital with an estimated $5.7 billion in new money raised and about $6.5 billion returned to investors -- presuming the IPOs hold their value until the lockup expires."

The methodology for the Dow Jones U.S. Venture Capital Index was developed by Sand Hill Econometrics together with Dow Jones Indexes. The values are based on a combination of values reported to Dow Jones VentureSource and value estimates. Sand Hill previously developed econometric methods for estimating company values when a recent market value is not readily available. Dow Jones VentureSource database is owned by Dow Jones & Company, Inc.

The selection universe for the Dow Jones U.S. Venture Capital Index is based on companies in the Dow Jones VentureSource database, the world's most comprehensive venture capital database which tracks more than 9,300 private investment firms and approximately 38,000 venture-backed companies -- in all industries and stages of development.

The index tracks the value of companies headquartered in the U.S. that have received equity funding from institutional venture capital funds. Excluded from the index are companies that receive funding solely from "angels," affluent private investors, or leveraged buyout funds. Component companies enter the index when they get a first round of venture funding. They are removed from the index when they are acquired, merge with another company, make an IPO or go out of business. The index is market-value weighted and is reviewed quarterly.

As of September 30, 2010, there were approximately 7,600 components in the Dow Jones U.S. Venture Capital Index. The Dow Jones U.S. Venture Capital Index was first published on March 31, 2010. The back-tested data shows that the index has an annualized performance of 15.35% since the end of 1991, before expenses and fees. Estimated monthly back-tested history is available back to December 31, 1991.2

The Dow Jones U.S. Venture Capital Index is calculated in U.S. dollars and is published quarterly, as funding events are usually reported at the end of calendar quarters, on a one-quarter delayed basis. Index values for intervening months also will be published quarterly. Index values for October, November and December will be published in May 2011.

The Dow Jones U.S. Venture Capital Index has been licensed to Chicago Alternative Investment Partners, LLC to serve as a basis for financial products. 

For more information on the Dow Jones U.S. Venture Capital Index, please visit www.djindexes.com .   

1The Dow Jones U.S. Venture Capital Index values have been revised from previous published values. These are normal, ongoing revisions that occur when previously unreported transactions become known. 

2The Dow Jones U.S. Venture Capital Index was first published on March 31, 2010. All estimated daily historical closing prices prior to that date are based on back-testing (i.e., calculations of how the index might have performed in the past if it had existed). Back tested performance information is purely hypothetical and is solely for informational purposes. Back tested performance does not represent actual performance, and past performance is not indicative of future results.

Journalists may e-mail questions regarding this press release to media@djindexes.com 

Note to Editors:

About Dow Jones Indexes

Dow Jones Indexes ( www.djindexes.com ) is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best-known for the Dow Jones Industrial Average, Dow Jones Indexes offers more than 130,000 equity indexes as well as fixed-income and alternative indexes, including measures of hedge funds, commodities and real estate. Dow Jones Indexes employs clear, unbiased and systematic methodologies that are fully integrated within index families. Dow Jones Indexes is part of a joint venture company owned 90 percent by CME Group Inc. ( www.cmegroup.com ) and 10 percent by Dow Jones & Company, Inc. ( www.dowjones.com ), a News Corporation company (Nasdaq:NWS) (Nasdaq:NWSA) (ASX:NWS) (ASX:NWSLV) ( www.newscorp.com ).

The Dow Jones Indexes logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1289

"Dow Jones®", "Dow Jones Indexes" and "Dow Jones Venture Capital Indexes" are service marks of Dow Jones Trademark Holdings LLC ("Dow Jones"), and have been licensed for use by CME Group Index Services LLC ("CME Indexes"). Investment products based on the Dow Jones Venture Capital Indexes are not sponsored, endorsed, sold or promoted by Dow Jones, CME Indexes or their respective affiliates and none of Dow Jones, CME Indexes and their respective affiliates make any representation regarding the advisability of investing in such products. Inclusion of a company in any of the Dow Jones Venture Capital Indexes does not in any way reflect an opinion of Dow Jones, CME Indexes or any of their respective affiliates on the investment merits of such company. None of Dow Jones, CME Indexes or any of their respective affiliates is providing investment advice in connection with these indexes.

CONTACT: Dow Jones Indexes' press offices:
         New York:

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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