Nasdaq Private Market Sets New Annual Transaction Record in 2019
87 private company-led transactions and $4.8 billion in transaction value completed
Facilitated single-largest transaction activity by number of eligible sellers
NEW YORK, Feb. 06, 2020 (GLOBE NEWSWIRE) — The Nasdaq Private Market, LLC, a leading provider of liquidity solutions for today’s private securities, has published its 2019 Year-End Private Company Report, which summarizes private company liquidity activity on the Nasdaq Private Market platform. Nasdaq Private Market facilitated 87 private company-sponsored secondary transactions — a new annual record high — with total transaction value of $4.8 billion.
“2019 was yet another record-breaking year for Nasdaq Private Market and secondary market activity overall on our platform,” said Eric Folkemer, Head of Nasdaq Private Market. “As this market matures, the private company founders working with us are more comfortable in offering liquidity programs than ever before to their shareholders, investors and employees alike.”
While private companies operate on their own growth timeline, almost all will face liquidity pressures from employees and early investors, whether they are a more mature company looking to prevent shareholder dilution following a funding round, or a younger startup that needs to raise capital to grow.
Additional findings from the report include:
- Early-stage companies drive transaction volume: The highest number of programs by funding round were for early-stage companies (Series B funding round or earlier) — a first for Nasdaq Private Market.
- Recurring demand: Close to 40% are returning clients to Nasdaq Private Market, signalizing the increase in demand for recurring liquidity programs in the pre-IPO phase of a company’s lifecycle.
- Buyer evolution: 2019 saw a steady increase in third-party tender offers (46) while 47% of early-stage company programs in 2019 were share repurchase programs, where private companies typically use cash proceeds from a funding round.
Since its founding in 2013, Nasdaq Private Market has facilitated 350 programs, generating $24 billion in transaction value* for 230 private companies — including 85 unicorns — reaching 37,000 shareholders to deliver technology and secondary market expertise to more private companies than ever before.
To download a copy of the 2019 Year-End Private Company report, visit www.npm.com.
Source: Activity since 2013 with valuation data and other data stated above is aggregated from PitchBook and the Nasdaq Private Market and SecondMarket platforms.
About The Nasdaq Private Market, LLC
The Nasdaq Private Market, LLC (NPM) is a premier liquidity provider to private companies. Whether a company seeks to optimize an eventual IPO or remain private permanently, NPM provides comprehensive technology and capital market support to meet its needs. For certain eligible investors, NPM 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 © 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.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Will Briganti Nasdaq Private Market (646) 964–8169 firstname.lastname@example.org
© 2020 Nasdaq, Inc. The Nasdaq logo and the Nasdaq ‘ribbon’ logo are the registered and unregistered trademarks, or service marks, of Nasdaq, Inc. in the U.S. and other countries. All rights reserved. This communication and the content found by following any link herein are being provided to you by Nasdaq, Inc. and/or certain of its subsidiaries (“Nasdaq”), for informational purposes only. Nasdaq makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. At the time of publication, the information herein was believed to be accurate, however, such information is subject to change without notice. Nothing herein shall constitute a recommendation, solicitation, invitation, inducement, promotion or offer by Nasdaq for the purchase or sale of any investment product, nor shall this material be construed in any way as investment, legal, or tax advice or as a recommendation, reference, or endorsement by Nasdaq.