Vulturis Financial Data Services has launched a venture-capital initial public offering yield index.
Based on historical data pertaining to returns of IPOs, the index weighs the average returns and exhibits the feasibility and viability of offering public stock for a start-up.
The VC IPO Yield Index shows the return of VC IPOs relative to the number of filings on a monthly basis.
The ratio uses the adjusted liquidity, or proceeds, of initial public offerings, giving founders a reference point when considering going public.
Vulturis launched the index as a tool for both angel investors and entrepreneurs to weigh their options when considering going public.
The overall sentiment of IPO returns has been declining over the years, which consequently corresponded to lower public offering volumes.
