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An Index for Venture Capital
(2003)
  • John M. Quigley, University of California, Berkeley
  • Susan E. Woodward
Abstract
In this paper we build an index of value for venture capital. Our approach overcomes the problems of intermittent, infrequent pricing of private company deals by using a repeat valuation model to build the index, and it corrects for selection bias in the reporting of values. We use a unique data set from Sand Hill Econometrics. The index measures the return and risk for venture capital. Its covariance with other asset classes from 1987-1999 enables us to explore the role of venture capital in diversified portfolios during a period of increased importance of venture capital in the economy.
Keywords
  • Private equity,
  • price index
Publication Date
July, 2003
Citation Information
John M. Quigley and Susan E. Woodward. "An Index for Venture Capital" (2003)
Available at: http://works.bepress.com/john_quigley/8/