Strong market activity and investor demand drives record-setting jump in secondary liquidity
NEW YORK, Jan. 29, 2019 (GLOBE NEWSWIRE) — The Nasdaq Private Market, LLC (NPM), a leading provider of liquidity solutions for today’s private securities, has released its 2018 Year End Private Company report, which summarizes private company liquidity activity on the NPM platform.
NPM facilitated a record-setting increase in its annual transaction volume from $3.2 billion and 51 total programs in 2017 to $12 billion and 79 total programs in 2018. Factors that contributed to the strong momentum include: NPM supporting several large-scale transactions with a total value greater than $1 billion, a rise in the number of recurring programs on the NPM platform, and an increasing number of companies seeking to leverage NPM for price discovery, using auctions to determine the transaction value.
“We experienced record growth in 2018 as private companies look to our market-leading technology and expertise for their secondary liquidity programs,” said Eric Folkemer, Head of Nasdaq Private Market. “Private companies see the advantages in NPM’s experience, client service, and sophisticated buyer network. By taking a proactive approach to structured liquidity programs, our clients can give their employees and investors an opportunity to realize value during the pre-IPO stage of their corporate lifecycle.”
Private companies who used the NPM platform for secondary liquidity programs in 2018 include: Cohesity, Credit Karma, LegalZoom, Marine Layer, Opendoor, Rappi, Snowflake, and Tanium.
Additional findings from the report include:
- Buyer evolution: Third party tender offers doubled to 46 yearover year, outnumbering company repurchases for the first time on the NPM platform;
- Current and former employees are primary sellers: Companies continue to use controlled liquidity programs as a way to recruit, retain, and reward private company employees. On average, eligible sellers directed to the NPM platform included 90% of a client’s current employees and 50% of ex-employees. The median NPM client has 450 employees;
- Average company age & funding stage: Nearly half of NPM’s clients in 2018 were companies 10 years or older and the median funding stage is Series D;
- Recurring demand: Nearly 30% are returning clients to NPM, indicating strong demand for recurring liquidity programs.
Since its inception in 2013, NPM has facilitated over 230 transactions for private companies, facilitating $19 billion in transaction value, and supporting over 24,000 shareholders. For further information on NPM and to download a copy of the 2018 Year End Private Company report, visit www.npm.com.
About Nasdaq Private Market
The Nasdaq Private Market, LLC is a premier liquidity provider to private companies. Whether a company seeks to optimize an eventual IPO or remain private permanently, Nasdaq Private Market provides comprehensive technology and capital market support to meet its needs. For certain eligible investors, Nasdaq Private Market is a place to engage with some of the most exciting private companies. The information contained herein is provided for informational and educational purposes only. None of the information provided is an offer or solicitation to buy or sell any securities, or to provide any legal, tax, investment or financial advice. Investing in private company stocks is speculative and involves a high degree of risk. You must be prepared to withstand a total loss of your investment. You are strongly encouraged to complete your own independent due diligence before investing in private company stock, including obtaining additional information, opinions, financial projections, and legal or other investment advice. The Nasdaq Private Market, LLC 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 advice to any user of the Nasdaq Private Market website or its services. Technology services may be offered by The Nasdaq Private Market, LLC’s subsidiary, SecondMarket Solutions, Inc. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, and SMTX, LLC, a registered broker-dealer, each of which is a member FINRA/SIPC and wholly-owned subsidiary of the Nasdaq Private Market, LLC. Transactions in securities conducted through NPM Securities, LLC or SMTX, 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. Data collected from the SecondMarket platform may include transactions conducted through current and former affiliates of SecondMarket. To learn more, visit www.npm.com.
About Nasdaq
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