Nasdaq Private Market Releases State of the Private Market Report
April 18 2024 - 3:00PM
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 D™ 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 SecondMarket™.
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
SecondMarket™ 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
MarketNasdaq 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.
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/
NPM Media Contacts
Amanda Gold (New York) –
Amanda.Gold@npm.comChief Marketing
Officer, Nasdaq Private Market