Nasdaq Private Market Announces a Record 57 Liquidity Transactions in First Six Months of 2021
Facilitated $4.6 billion in total transaction value during the period, a new three-year high
NEW YORK, Aug. 04, 2021 (GLOBE NEWSWIRE) — Nasdaq Private Market, a leading provider of liquidity solutions for today’s private companies, has published its Mid-Year Private Company Report, which summarizes private company liquidity activity on the Nasdaq Private Market platform for the first six months of 2021. Nasdaq Private Market facilitated 57 private company-sponsored secondary transactions during the period, with total transaction value of $4.6 billion.
“With heightened levels of investor demand across the U.S. venture capital industry, deal frequency is expected to remain elevated as companies establish new strategic initiatives to drive their growth as the economy enters a post-pandemic period,” said Eric Folkemer, President of Nasdaq Private Market. “As private companies grow and seek out new mechanics to incorporate into their liquidity offerings, Nasdaq Private Market is the clear choice to serve as the market-leading provider of liquidity solutions for companies of all stages.”
Additional findings from the 2021 Mid-Year Private Company Report include:
- Unparalleled first half: Nasdaq Private Market’s centralized platform for pre-IPO trading activity generated a three-year high in trading volume in the first six months of 2021 for a 150% y/y growth in total dollar volume transacted. Both early- and late-stage companies saw record-level valuations.
- Growing international appetite for secondary programs: Nasdaq Private Market also observed an uptick in client valuation and activity at the international level. Throughout H1 2021, over 80% of Nasdaq Private Market clients headquartered outside of the U.S. received valuations exceeding $500 million.
- Evolving priorities: Earlier-stage companies have been prioritizing secondary liquidity transactions to remain attractive to their shareholders and competitive in their employee benefits. The average age of Nasdaq Private Market’s clients continued its downward trend from 13 years in H1 2020 to 9 years in H1 2021.
- Cryptocurrency sector surge: Including a direct listing with Nasdaq in H1 2021, the cryptocurrency industry has seen increased activity in recent quarters and Nasdaq Private Market anticipates more secondary transactions for companies in this sector in the pipeline.
Founded in 2013, Nasdaq Private Market’s solutions support private companies throughout all stages of their pre-IPO lifecycle. Our innovative technology facilitates company-sponsored tender offers, buyside auctions, custom trading marketplaces and shareholder block trades to provide eligible shareholders access to liquidity. Since inception, Nasdaq Private Market has facilitated 477 liquidity programs involving 59,000 shareholders at 250+ private companies, which can have the benefit of providing liquidity for their employees and early investors, whether it be to retain their best talent or to maintain their competitive advantage in the marketplace.
As previously announced, Nasdaq Private Market has been contributed to a standalone, independent company, which received strategic investments from SVB, Citi, Goldman Sachs, and Morgan Stanley. The joint venture is dedicated to serving a large and growing market for private company secondary liquidity and will build upon Nasdaq Private Market’s existing franchise and technology to create an institutional-grade, centralized secondary trading venue for issuers, brokers, shareholders and prospective investors of private company stock so clients can use one platform to transact with confidence.
To download the report and speak with a private company liquidity expert, visit www.npm.com.
About Nasdaq Private Market
Nasdaq Private Market is a leading provider of liquidity solutions for today’s private companies. Our innovative technology facilitates company-sponsored tender offers, buyside auctions, custom trading marketplaces and shareholder block trades to provide eligible shareholders access to liquidity. For more information, visit: www.npm.com.
Legal Notices and Disclosures
The information contained herein is provided for information and educational purposes only. None of the information provided represents an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, nor does it constitute an offer to provide legal, tax, financial or investment advice or service.
Copeland Markets, LLC (dba Nasdaq Private Market) is not: (a) a registered exchange under the Securities Exchange Act of 1934; (b) a registered investment advisory under the Investment Advisers Act of 1940; or © a financial or tax planner, and does not offer legal, financial, investment or tax advice. Securities related services are offered through NPM Securities, LLC, a wholly owned subsidiary of Nasdaq Private Market, and a registered broker-dealer and alternative trading system, which is a member FINRA/SIPC. Nasdaq Private Market is operationally independent and distinct from The Nasdaq Stock Market, LLC. 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, nor do transactions in securities conducted through NPM Securities, LLC affect an issuer’s eligibility to list its securities for trading on The Nasdaq Stock Market, LLC.