Aggregated Data Uncovers Uptick in Eligible Participants for Company-Sponsored Liquidity Programs and Increasing Pipeline of Investors and Shareholders in Trading Marketplace
New York and San Francisco – April 18, 2024 – Nasdaq Private Market (NPM), a leading marketplace for the efficient trading of private company stock, announced today that it has released its annual State of the Private Market Report. Download a copy of the report here:
(NPM STATE OF THE PRIVATE MARKET REPORT)
The State of the Private Market report includes meaningful data and actionable analytics generated by NPM’s Company Solutions, Capital Markets, and Tape DTM Data divisions. Market intelligence and commentary from the report cover industry trends and exclusive data points on company-sponsored liquidity programs, anonymized program participation rates, and order flow within the company’s proprietary electronic trading marketplace SecondMarketTM. Key findings from the 2023 report include:
- In 2023, private company executives continued to reconsider their pre-IPO fundraising and liquidity strategies, whether halting activities altogether or structuring insider-led rounds, convertible assets, or company-sponsored secondaries.
- Even with a pullback in venture capital funding, certain segments of the market attracted massive outlays of capital such as artificial intelligence.
- Companies and investors alike gradually approached equilibrium in secondary pricing expectations as the market landscape took shape.
- Multi-year highs in participation rates, across NPM-facilitated secondaries, reached median levels of 53% in 2022 and 75% in 2023, compared to a historical median of 48%, which pointed to pent-up sell-side supply.
- Despite the market consolidation and pullback in quantity of structured secondaries since 2021, NPM facilitated $3.3 billion in transactional volume in 2023.
“We are pleased to release our annual State of the Private Market report,” commented Tom Callahan, Chief Executive Officer of Nasdaq Private Market. “As one of the most trusted secondary trading venues for private companies, employees, and investors, activity on our platform is a reflection of investor sentiment and industry trends across the global private market ecosystem.”
NPM partners with some of the world’s fastest-growing, venture-backed private companies to facilitate company-sponsored liquidity programs. Its SecondMarketTM trading marketplace is gaining adoption by sellers and buyers who trade private company shares. The company’s patent-pending Transfer and Settlement product efficiently manages share transfer activity from match through settlement for some of the most sophisticated private companies, banks, and brokers. Its private market data helps individuals and entities better evaluate global investment opportunities.
As an industry-leading provider in the secondary market, NPM has executed more than $50 billion in transactional value across over 700 company-sponsored liquidity programs for venture-backed private companies as well as 190,000 individual eligible shareholders and investors.
About Nasdaq Private Market
Nasdaq Private Market operates a proprietary secondary marketplace and acts as a premier liquidity provider for private company trading and transactions. Through innovative technology and an experienced capital markets team, NPM supports the needs of corporate, institutional, and retail clients. Founded in 2013, the company provides solutions for private companies throughout each stage of their pre-IPO lifecycle. NPM’s product specialists facilitate private company stock transactions including tender offers, auctions, block trades, company-directed windows of liquidity, and pre-direct listing continuous trading.
Nasdaq Private Market is an independent company with strategic investments from Nasdaq, Citi, Goldman Sachs, Morgan Stanley, Allen & Company, BNP Paribas, DRW Venture Capital, UBS, and Wells Fargo.
Learn more at www.nasdaqprivatemarket.com.
NPM Media Contacts
Amanda Gold (New York) – Amanda.Gold@npm.com
Chief Marketing Officer, Nasdaq Private Market
Disclosures and Disclaimers
NPM is not: (a) a registered exchange under the Securities Exchange Act of 1934; (b) a registered investment adviser under the Investment Advisers Act of 1940; or (c) a financial or tax planner and does not offer legal or financial advice to any user of the NPM website or its services. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, and member FINRA/SIPC. Transactions in securities conducted through NPM Securities, LLC are not listed or traded on The Nasdaq Stock Market LLC, nor are the securities subject to the same listing or qualification standards applicable to securities listed or traded on The Nasdaq Stock Market LLC.
Please read these other important disclosures and disclaimers about NPM found here: https://www.nasdaqprivatemarket.com/disclosures-disclaimer/