PitchBook Introduces Valuation Model for VC-Backed Companies

Core Insights - PitchBook has launched PitchBook Valuation Estimates, a daily framework aimed at providing a consistent, independent, and data-informed valuation signal for over 15,000 VC-backed companies [1][2] Group 1: Valuation Model - The new model combines machine learning with PitchBook's private-market data, public-market signals, and capital-structure insights to determine valuations [1] - Unlike traditional backward-looking valuations based on financial reports and comparable transactions, this model offers daily valuations by incorporating both public and private market data [2] - The model updates last-known valuations using public and private comparables and includes company-specific indicators such as employee growth and company age [2] Group 2: Integration and Product Development - The valuation model is integrated into the overall PitchBook platform, enhancing its offerings in the private market space [3] - This launch is part of a broader strategy by Morningstar and PitchBook to expand their coverage of private markets, following the introduction of various indices tracking companies transitioning from private to public markets [3][4] - Recent product launches include the Morningstar PitchBook GenAI 20 index, which tracks the 20 largest GenAI companies, and several Evergreen Fund Indexes [4]