Venture capital-backed companies in the US have performed poorly this year, according to the Dow Jones US VC index.

Venture capital-backed companies in the US have performed poorly this year, according to the Dow Jones US venture capital index.

The index fell 18.3 per cent during the first half of 2010.

Sand Hill Econometrics, which co-developed the index’s methodology, attributes the decline to ‘disappointing exits’, where companies failed or were acquired for low values, and the general decline in equity values during the quarter.

The Dow Jones US Total Stock Market Index fell 11.52 per cent during the 2010 second quarter.

Economist and founder of Sand Hill Econometrics, Susan Woodward, says, ‘Year-to-date we have a drop in values, with most of that decline in the second quarter. However, venture values are up 57 per cent from the trough in February 2009, confirming that venture capital is here to stay.’