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.