CSVP Fund’s Cornerstone Global Enterprise SaaS (CGES) Index is live now !
The CGES Index has outperformed the NASDAQ by 25% yoy as of 31st March 2021 !
Cornerstone Venture Partners Fund has taken a leading initiative to create India’s first Enterprise SaaS only index namely, the Cornerstone Global Enterprise SaaS (CGES) Index - a financial index of Top 30 emerging Enterprise SaaS companies listed on global stock exchanges. The index constituents have been carefully chosen to ensure balanced sectoral and market cap representation
Traditional indices like Nasdaq Composite, S&P500 and DJIA are primarily built on the basis of market capitalization of the constituents while giving little emphasis on sectoral representation. These indices are heavy-weighed in the favor of traditional businesses like manufacturing, consumer products and technology services.
CGES Index is a one-of-its-kind index that is specifically designed to track the performance of the new breed of highly scalable companies that operate on the SaaS or SaaS-based business model. Even within SaaS, CGES Index is squarely focused only on the pure-play Enterprise (B2B) SaaS companies and does not include Consumer (B2C) SaaS companies like Netflix, Dropbox, etc.
Additionally, CGES Index companies are not selected basis the market capitalization, but rather selected keeping in mind the diversity of the size, sector, technology and scale of these companies. The CGES Index is built to equitably represent the universe of global emerging enterprise SaaS companies operating across various sectors, technologies and scale of operations.
CGES is a new-age index built on the basis of a specific ‘business model’ of SaaS, rather than the ‘size’ or ‘sector’ of the companies. It is intended to provide a benchmark for investors across the globe looking to invest in enterprise SaaS companies.
Since SaaS companies have a unique business model which is very different from traditional asset-heavy businesses like manufacturing or people-heavy businesses like technology services, it demands its own metrics and benchmarks to accurately understand the economics and valuation of such businesses.
The CGES Index will be accompanied with a set of SaaS metrics that can be used by anyone to analyze & benchmark the performance of any enterprise SaaS company.
The base date of the CGES Index is set at 01 January 2019 with a base value of 1,000. The closing value of CGES Index on date of publishing this (21 Apr 2021) was 3165.62, which translates into an annualized return upwards of 60% !
The corresponding returns of NASDAQ Composite, S&P 500 and DJIA for the same period are ~37%, ~24% and ~18%. All in all, the CGES Index has outperformed all the major global indices by a margin, and continues to outperform in 2021 as well.
We believe the Indian SaaS ecosystem is on the cusp of an explosive growth propelled by wide-scale adoption of SaaS products by Indian customers. As part of our leading initiative to support this ecosystem, we created the CGES Index. This Index will enable Investors to learn and better understand the SaaS economics, benchmark against the top performing SaaS companies in the world and make informed decisions.
We will share more details about the Index constituents and their selection in a series of our forthcoming blogs !
Learn more about: CSVP Fund | CGES Index | Enterprise SaaS
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The Cornerstone Global Enterprise SaaS Index (“CGES Index”) ™ is a trademark of CSVP. The CGES Index is created & maintained using a proprietary algorithm and is to be used for informational purpose only. It is not to be construed as an investment advice or investment recommendation in any of the constituent companies / stocks that are directly or indirectly part of the Index. The Index is created using publicly available data published on the websites of the respective companies. All data presented is as per our internal research and analysis leveraging publicly available data and is being presented only for academic deliberation and discussion purposes and is not to be viewed as any specific commentary / recommendation / evaluation / conclusion on any of the companies / stocks that are directly or indirectly part of the CGES Index.
CSVP also analyses, maintains, and publishes certain financial and non-financial metrics (“SaaS Metrics”) on the Index at an aggregate level, and not at a specific company / stock level that constitute the CGES Index. These SaaS Metrics are provided purely for informational purpose and CSVP assumes no liability for accuracy, suitability, or completeness of the SaaS Metrics. The SaaS Metrics are created using publicly available third-party information and CSVP does not claim any ownership of the sourced data. CSVP is not responsible for the accuracy, suitability or completeness of the information originally disclosed by the owner of the information and any information provided herein. CSVP accepts no liability and offer no guarantee as to whether the information is up to date, correct or complete.
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