NASDAQ Private Market Member Companies connect with institutional and accredited investors through our broker-dealer network.
Member Companies are able to conduct primary capital raises and enable controlled secondary transactions, and in doing so can enhance their operational preparedness for an IPO or M&A event.
Qualification for company membership requires compliance with minimum standards for reporting and disclosure, and meeting at least one of our qualification requirements. Companies should also consider our recommended governance guidelines.
Members must meet at least one of the following criteria.
* Based on most recent financing round/NASDAQ Private Market transaction
** In the latest fiscal year, or in two of the last three fiscal years
‡ Sponsored by a qualified entity which has invested in at least three private equity investments over the prior two years or has at least $50 million under management, and has a significant investment in the company.
Member Companies should consider satisfying the following guidelines, however they are not a requirement for membership.
At least two independent directors
An audit committee consisting solely of independent directors who can read and understand fundamental financial statements. The audit committee should have at least two members. One member of the audit committee should have experience that results in the individual's financial sophistication. The Audit Committee should have sole responsibility to hire/fire the auditors.
The Member Company should adopt a code of conduct applicable to all directors, officers and employees
The Member Company should hold an annual meeting for its equity owners to discuss developments and ask questions. This meeting may be conducted via online technology.
The Member Company should conduct appropriate review and oversight of all related party transactions for potential conflict of interest situations.
Member Companies must meet the following criteria initially and on a continual basis.
The Member Company must provide audited annual financial statements and unaudited quarterly financial statements to company-approved transaction participants.
Yearly disclosures must be provided to transaction participants, including:
Business description (including discussion of significant developments, operations, competition and risks)
The Member Company must adopt and enforce an insider trading policy, designed to prevent the misuse of material non-public information.