Tracking the value of private companies with this new index

The NYSE OPEN Venture Capital Unicorn Index (^NYSEOVC) tracks the daily valuations of private companies, with SpaceX, OpenAI, Databricks, Stripe, and Fanatics being the top five largest companies of the 50 the index tracks.  OPEN Co-Founder and CEO David Shapiro sits down with Julie Hyman and Josh Lipton in-studio to shed light on how the index works. "There are folks who've been trying to create indices out there who rely primarily on fundraising data," Shapiro explains. "We took a different approach and what we've done is worked with ICE, the NYSE parent company [New York Stock Exchange], to create a methodology that incorporates real secondary transaction data. So we understand where these companies are trading in the secondary on a daily basis. And using that significant breadth of data can actually price them on a daily basis." Shapiro comments on the index's future with hopes to eventually launch an ETF: "It's very important with our partnership with the New York Stock Exchange that we introduce structures to the market that can increase access, but in a robust, reliable, and really trusted way. We don't want to rush something to market that doesn't meet that really stringent criteria. And so stage one is launch this index." For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Luke Carberry Mogan.