Private Company Liquidity Update from Nasdaq Private Market

Companies continue to use structured and controlled liquidity as a valuable recruitment and retention tool while growing privately. Learn more about the Nasdaq Private Market platform and Private Liquidity Programs.

Liquidity Program Volume Rises 35% in First Half of 2017

The first half of 2017 was the busiest period to date for private company liquidity programs conducted on the Nasdaq Private Market platform. Companies continue to use structured and controlled liquidity as a valuable recruitment and retention tool while growing privately.

Employee-Focused Liquidity Programs

The majority of liquidity programs conducted on the NPM platform during the first half of 2017 were employee-focused. Current and former employees made up 84% of the total eligible seller pool and about 79% of the total participants. Even in transactions where a third party was the buyer or a company used proceeds from a recent fundraise to buy back stock, employees remained the focus of these programs.

Companies also continued to enforce selling restrictions on eligible participants. For current employees, companies typically limit sales to 10-25% of total vested equity. Former employees are often offered an all or nothing option for participation, as companies look to clean up their cap tables.

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Contact Nasdaq Private Market to Learn More About Private Liquidity Programs:Companies@npm.com


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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.

THE NASDAQ PRIVATE MARKET, LLC IS NOT: (A) A REGISTERED EXCHANGE UNDER THE SECURITIES EXCHANGE ACT OF 1934; (B) A REGISTERED INVESTMENT ADVISOR UNDER THE INVESTMENT ADVISORS ACT OF 1940; OR (C) A FINANCIAL OR TAX PLANNER, AND DOES NOT OFFER LEGAL, FINANCIAL, INVESTMENT OR TAX ADVICE TO ANY USER OF THE NASDAQ PRIVATE MARKET WEBSITE.

TECHNOLOGY SERVICES MAY BE OFFERED BY THE NASDAQ PRIVATE MARKET, LLC’S WHOLLY-OWNED SUBSIDIARY, SECONDMARKET SOLUTIONS, INC. SECURITIES-RELATED SERVICES MAY BE OFFERED THROUGH SMTX, LLC, A REGISTERED BROKER-DEALER, AND A MEMBER FINRA/SIPC AND A WHOLLY-OWNED SUBSIDIARY OF THE NASDAQ PRIVATE MARKET, LLC. SEE ALSO SMTX CUSTOMER DISCLOSURES FOR MORE INFORMATION ABOUT SMTX, LLC.

SECURITIES OFFERED IN TRANSACTIONS CONDUCTED THROUGH 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Nasdaq Private Market

Nasdaq Private Market

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