Battery Ventures, the global investment firm, launched a new index to track the stock performance of prominent consumer-marketplace companies, businesses that are becoming more and more embedded into the daily lives of consumers—and, increasingly, driving a new wave of initial-public stock offerings.
The Battery Marketplace Index includes 39 companies that serve as online hubs where buyers and sellers meet. They operate in sectors ranging from ride sharing (Uber, Lyft), to food delivery (Grubhub, Delivery Hero), to travel and lodging (Expedia, TripAdvisor and Ctrip) to e-commerce (Wayfair*, eBay and Mercado Libre). To be included, the companies must be listed on one of the major global stock exchanges and boast a market capitalization of $500 million or more.
The index is designed to grow as more prominent marketplace companies mature and go public.
“Marketplaces are becoming deeply embedded in all aspects of our lives, from how we get from place to place, how we eat, travel, and shop, and even how we buy a home or hire a babysitter,” said Roger Lee, a Battery general partner. “The companies are also generating an impressive amount of market value: The marketplace companies in our index are worth roughly $1 trillion, and we estimate that could rise to $1.3 trillion** in the next 18 months as more companies go public.”
Research conducted by Lee and his team found that the stocks of the companies in the index have together risen by 594% in the last ten years, as of June 21, and also outperformed the Nasdaq Composite Index by 239% in that same period.***
Battery’s index evolved from a previous “Network Effect Index” the firm rolled out in 2017. That index included traditional consumer marketplaces as well as social networks, and focused more closely on businesses exhibiting network effects, meaning the services became more valuable the more people used them.
More information on the Marketplace Index can be found here. Data will be updated monthly.
About Battery Ventures
Battery strives to invest in cutting-edge, category-defining businesses in markets including software and services, web infrastructure, consumer internet, mobile and industrial technologies. Founded in 1983, the firm backs companies at stages ranging from seed to private equity and invests globally from offices in Boston, the San Francisco Bay Area, London, Israel and New York. Further information on Twitter (@BatteryVentures) and at www.battery.com.
Battery Ventures provides investment advisory services solely to privately offered funds. Battery Ventures neither solicits nor makes its services available to the public or other advisory clients. For more information about Battery Ventures’ potential financing capabilities for prospective portfolio companies, please refer to our website.
*Denotes a past or present Battery portfolio company. For a full list of all Battery investments, please click here.
Content obtained from third-party sources, although believed to be reliable, has not been independently verified as to its accuracy or completeness and cannot be guaranteed. Battery Ventures has no obligation to update, modify or amend the content of this post nor notify its readers in the event that any information, opinion, projection, forecast or estimate included, changes or subsequently becomes inaccurate.
**Data from CapIQ and Battery research.
*** Data from CapIQ; ten-year performance data measures the period from June 22, 2009 to June 21, 2019