Reported Holdings as of April 30, 2020:
ZX Market Update since April 30, 2020:
This report is based on data reported by 212 funds. Many holders of private company shares do not report their holding values and are thus not included in this report’s dataset. Further, many venture-backed private companies are not held by any reporting funds and are thus not included in this report. As such, this report should not be construed as providing a complete picture of shareholder sentiment or venture-backed private company performance.
1 Dollar-weighted return on all reported holdings
2 Equal-weighted mark-up or mark-down across all reported holdings
3 Trend Reversal – Positive reflects an individual holding marked up after consecutive quarterly periods marked down or flat
4 Trend Reversal – negative reflects an individual holding marked down after consecutive quarterly periods marked up or flat
5 Premium and Discount agnostic to share class
Reporting holders marked down their private portfolios 7.59% in this April 30th 2020 reporting period as investors and companies continued to grapple with Covid-19. While the depreciation was smaller than the March 13.6% decline, it was similarly broad-based with approximately 3 stocks being marked down for every 1 marked up.
Mark-ups in Lookout ($4.85-$11.16/share), Tempus Labs ($31.39/share), and Grand Rounds ($3.44-$3.47/share) contributed the largest dollar gains to portfolios, while mark-downs in Magic Leap ($4.61-$5.40/share), WeWork ($10.33-$10.34/share), and Airbnb ($70.80-$85.27/share) contributed the largest dollar losses.
On average positions were marked down 9.21% this period, with broadly consistent leaders and laggards. Largest individual mark-ups were again seen in Lookout, Tempus Labs, Grand Rounds, and Coupang ($6.93/share), while Magic Leap, Endeavor ($1.49/share), WeWork, and Airbnb saw the largest individual mark-downs.
Negative reversals in Starry ($1.26/share) and Compass ($99.46-101.86/share) represented the first time the names were marked down in three and two years, respectively, while negative reversals in Lime ($.16/share) and Didi Chuxing ($35.07-$50.93/share) reflected recent headwinds for Mobility companies.
Institutional demand for mid- and late-stage private companies has persisted through the downturn, as companies and sellers find capital to be available for primary and secondary transactions. This remains in stark contrast to general weakness in early stage venture markets, which continued to see strong, expected headwinds through the early stages of the Covid-19 recession.
While secondary volumes have been consistently strong through the last several months of volatility, pricing has more recently begun to rebound. June saw transacted prices range from 27% discounts to 26% premiums to recent financings, a step up from the prior period’s range of 60% discounts to 8% premiums. Sectors such as eCommerce, Payments, and Gaming have led the market higher, though bid prices have begun rising for category leaders, like Airbnb and Toast, in some of the more depressed sectors as well.
On average ZX Firm Sell Orders are being offered at a 20.2% discount to April 30th median holding value, broadly consistent with March’s 22.3%. Firm offerings in Reddit ($30.55/share) and Bolt Threads ($15.20/share) marked the largest discounts to average holding value at 28.0% and 21.1%.
ZX Firm Orders are unique to ZX. A ZX Firm Order (Offer or Bid) is a form of contract accepted on ZX, that allows a buyer or seller to contractually commit themselves to trading at the terms of an order ticket should a bona fide counterparty be presented, or pay a fee set to 10% of the notional value of the transaction should they fail to transact. Zanbato developed the concept of a Firm Order for private stock trading to solve for frequent frustration that parties often hold themselves out as buyers or sellers, but then pull out of transactions when counterparties are presented.
Zanbato Securities LLC (“Zanbato”) prepares and disseminates market information about venture-backed private company securities, and the current bids and offers for those securities listed on the ATS operated by Zanbato (“ZX”). The information provided in this report has been prepared by sales, trading, or other non-research functions. Pricing indications and macro commentary are provided for factual information purposes only. This report is not intended to assess the individual merits of a particular investment or strategy, does not constitute a recommendation to buy or sell any financial instrument or to participate in any trading strategy and should not be construed as such. This report does not constitute investment advice. Certain information in this report has been obtained from third party sources and, while such information was believed by Zanbato to be reliable, it has not been independently verified by Zanbato and Zanbato shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with any use of, or reliance on, such third party information. Furthermore, the information contained in this report may not be current due to, among other things, changes in the financial markets or economic environment. Zanbato does not, and has no obligation to, update any such information contained in this report. Any prices or quotations contained herein are indicative only, do not represent firm quotes as to either price or size and should not be used for valuation purposes.
Zanbato, Inc. and its affiliates (“Zanbato”) provide services which help users engage in private securities transactions efficiently, securely, and lawfully. Our services mainly process information concerning legal entities—but to ensure business is done properly, we’ll also have to handle information about natural persons like yourself. To that end, personal information collected by Zanbato is used solely for providing the service for which the Client (“you”) has engaged Zanbato.
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ZX is the exchange platform located at trading.zanbato.com and is only accessible to users authorized by Zanbato staff. To use ZX, we’ll need to collect and process more of your personal information for a few purposes.
At a high level, ZX is a mediated deal network. It’s built so your personal information is generally only visible to ZX staff—up until the point when a deal has been agreed and everyone needs to sign on the dotted line.
Read on to learn about the ways ZX handles your personal info. In this section, we’ll describe each of our processes, and how we handle the data.
When you register, several financial regulatory bodies require us to collect various personal information. This “registration information” includes full name, employer, title, business address, business telephone number, and business email address. In addition, before you may close a transaction on the site, we are required by the same bodies to have you fill out a “confidential customer questionnaire.” This form may request the ID number of your driver’s license or passport.
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You or your employer (the licensee) can create an account on Private Label for you. Your email address, combined with a password of your choosing, will allow you to sign in securely. We’ll also send you emails whenever necessary to help you manage your account - for example, if you need to reset your password, or if a major change to one of our policies is coming up.
Your full name may also be linked with your account at registration.
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If you believe that one of your contacts has provided us with your personal information and you would like to request that it be removed from our database, please contact us at email@example.com.
Several financial regulatory bodies require us to collect various personal information. This “registration information” includes full name, employer, title, business address, business telephone number, and business email address. In addition, before you may close a transaction, we are required by the same bodies to have you fill out a “confidential customer questionnaire.” This form may request the ID number of your driver’s license or passport.
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We utilize a number of third parties to power Zanbato, in addition to the ones listed above. As a result, your personal data may be transferred to the entities below and/or other service providers as necessary.
In all cases, we make sure that our service providers only process personal data as absolutely necessary to provide the functions we’ve described. This constraint is enforced through our service agreements with the third parties. We also use contracts to ensure that they provide at least the same level of protections for your personal data when we transfer it to them, and that these requirements also apply to any third parties used by our service providers, as well.
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Zanbato and our U.S. affiliates including Zanbato Securities LLC participate in and have certified their compliance with the EU-U.S. and the Swiss-US Privacy Shield Framework.
Zanbato is committed to subjecting all personal data received from European Union (EU) member countries and Switzerland, in reliance on the Privacy Shield Framework, to the Framework’s applicable Principles. To learn more about the Privacy Shield Framework, visit the U.S. Department of Commerce’s Privacy Shield List.
Zanbato is responsible for the processing of personal data it receives, under the Privacy Shield Framework, and subsequently transfers to a third party acting as an agent on its behalf. Zanbato complies with the Privacy Shield Principles for all onward transfers of personal data from the EU and Switzerland, including the onward transfer liability provisions.
With respect to personal data received or transferred pursuant to the Privacy Shield Framework, Zanbato is subject to the regulatory enforcement powers of the U.S. Federal Trade Commission. In certain situations, Zanbato may be required to disclose personal data in response to lawful requests by public authorities, including to meet national security or law enforcement requirements.
Our company and its infrastructure are based within the United States. Keep in mind that this means your personal data will be transferred to the U.S. for processing when interacting with Zanbato.
The European Commission recognizes that companies in the U.S., under the Privacy Shield framework, provide adequate protection for the transfer of personal data. If we ever need to transfer data to a non-recognized country or U.S. company, we will let you know.
For the purposes of GDPR, our designated representative based in the EU is Christopher Fenichell. Our representative may be reached in writing at Zanbato UK Ltd., 52 Debden Road, Saffron Walden, Essex, CB11 4AB, United Kingdom, or by email at email@example.com.
1.1 Structure & Links
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1.4 Scope of Use.
1.4.1 Access. You agree to access and use the Site and all Site Content solely pursuant to your login information (username and password). You agree to notify us and change your password immediately, if your password is lost, stolen, or misused. You are responsible for all activity (including any unauthorized activity) attributable to your login information.
1.4.3 Restrictions on Use. Except as may be otherwise specifically authorized in a signed writing by BROKER-DEALER and Zanbato, you will not (i) directly or indirectly grant anyone else access to, or permit anyone else to access or use, the Site or any Site Content or Linked Site Content other than, if applicable, your employees and agents that you authorize to access Information and transmit proposed indications of interest or orders with respect to potential transactions to BROKER-DEALER on behalf of you or your employer; (ii) copy, display, publish, republish, upload, distribute, transfer, sell, assign, rent, timeshare, or sub-license any Site Content, Linked Site Content or access thereto; (iii) resell or otherwise distribute your Log-In Credentials (as defined below) displayed on the ATS; (iv) alter, modify, delete, adapt, translate, disassemble, decompile, or reverse engineer or otherwise attempt to discern the source code, algorithms, software design or architecture of, or modify, adapt, translate or reproduce the Site Content or Linked Site Content, or any part thereof, including any software or any product or service identifications, author attributions, copyright notices, disclosures, disclaimers, trade names, trademarks, or proprietary restrictions in such Site Content or Linked Site Content or any associated documentation; (v) create a separate database of any Site Content or Linked Site Content or merge any part of the Site Content or Linked Site Content with or into other software, or create derivative works based upon the Site Content or Linked Site Content; (vi) post any Site Content or Linked Site Content on any intranet, extranet, or other application, system, or location; (vii) use any Site Content or Linked Site Content to construct or facilitate the construction of any products or services that compete with the Site or the Site Content; (vii) use information which you have received through access to the Site or Linked Site Content as to the workings of the Site for any purpose whatsoever (other than use of the Site), including without limitation competition with the Site; or (viii) take or authorize any action that could detrimentally interfere with the proper workings of the Site or any Linked Site. When you use the Site and any Linked Site, you will be permitted to view such Information as is permitted by BROKER-DEALER, Zanbato and the Information Provider. Only BROKER-DEALER or one of its authorized registered representatives may place an indication of interest or order, on your behalf, if and when such indication of interest or order is approved by BROKER-DEALER.
1.4.4 Entitlement Rights. Please note that you may not be able to gain access to all of the Site Content. Your entitlement to Site Content may be limited by (i) applicable laws and regulations (including securities laws), (ii) Zanbato and/or BROKER-DEALER, and/or (iii) internal policies and practices of the applicable Information Provider, in each case as may be amended from time to time at any time. Such restrictions are maintained via an entitlement system which controls your ability to view particular items of Site Content. BROKER-DEALER and Zanbato disclaim any and all liability associated with entitlement decisions made by them or by Information Providers.
1.6 Registration and Access Data; Authorized Customer Delegees
1.6.2 Authorized Customer Delegees. If you are a customer of BROKER-DEALER, you shall designate to BROKER-DEALER and Zanbato such of your delegees ("Authorized Customer Delegees") you wish to have access to the Site and shall promptly notify BROKER-DEALER and Zanbato of all additions and deletions to your list of Authorized Customer Delegees.
1.7 Log-In Credentials; Security.
1.7.1 Log-In Credentials. Zanbato shall provide separate log-in credentials (a "Log-In Credential") to you if you are designated by notice from BROKER-DEALER to Zanbato and approved by BROKER-DEALER and Zanbato to access the Site. The Log-In Credential will permit you to access and use the ATS. BROKER-DEALER and you shall keep your Log-In Credential strictly confidential using at least the same degree of care that BROKER-DEALER uses to protect its own confidential information, but in no even less than the industry-recommended degree of care for such credentials. Each Log-In Credential may only be used by you. Upon the request of BROKER-DEALER or a customer of BROKER-DEALER by whom you are employed or engaged to terminate a Log-In Credential provided to you, Zanbato shall effect such request as soon as reasonably practicable after receipt thereof. In the event your Log-In Credential is lost, stolen or compromised, you shall be responsible for notifying BROKER-DEALER and Zanbato of the same, and Zanbato shall cancel any such lost, stolen or compromised Log-In Credential as soon as practicable after receipt of such notice. You shall remain responsible for any actions taken through the use of your Log-In Credential until your Log-In Credential is cancelled.
1.8 User Provided Content. All Site Content (other than the BROKER-DEALER and Zanbato Content and Linked Site Content), including comments, questions, and opinions uploaded, expressed, or submitted to a message board, blog, or other publicly available section of the Site (including password-protected areas) and all responses thereto are solely the opinions and responsibility of the person or entity submitting them and not BROKER-DEALER and Zanbato. You understand and acknowledge that you are responsible for whatever content you submit and that you, not BROKER-DEALER or Zanbato, have full responsibility for such content, including its legality, reliability, and appropriateness. Under no circumstances may you submit information that you know, or have reason to believe, is false or intentionally misleading. By uploading or otherwise transmitting material to any area of the Site, you warrant that the material is your own or is in the public domain or otherwise free of proprietary or other restrictions and that you have the right to post it to the Site. You grant to BROKER-DEALER and Zanbato the perpetual, irrevocable, transferable, worldwide, royalty-free right and license to use all content you upload or otherwise transmit to the Site in any manner BROKER-DEALER and Zanbato may choose in connection with the Site. BROKER-DEALER and Zanbato reserve the right, but do not assume any responsibility, to remove any material posted on the Site which BROKER-DEALER and Zanbato, in their sole discretion, deem inconsistent with the foregoing commitments, including without limitation any material as to which BROKER-DEALER or Zanbato has been notified, or have reason to believe, constitutes a copyright infringement. BROKER-DEALER and Zanbato can neither review all material before it is posted on the Site nor ensure prompt removal of objectionable material after it has been posted. Accordingly, BROKER-DEALER and Zanbato will have no liability for any action or inaction regarding or otherwise involving Third-Party Content.
1.9 Right to Terminate User Access. BROKER-DEALER and Zanbato reserve the right to limit, restrict, and terminate your access to and use of the Site at any time, in whole or in part, with or without cause in its sole discretion and without notice. No Information Provider, BROKER-DEALER or Zanbato will have any liability in connection with such limitation, restriction, or termination of your access to or use of the Site.
3.1 Disclaimers; Site, Site Content and Linked Site Content. The Site Content and the Linked Site Content are provided to facilitate identification of investment opportunities by sophisticated investors and to provide a vehicle for access to related information, and are not a confirmation of any opinion or information contained therein. Neither Zanbato nor BROKER-DEALER make any representation or warranty as to the contents of any Linked Site or any Site Content provided by a third party. The Site Content and Linked Site Content generally speak only as of the date issued. You should not rely on the Site Content and Linked Site Content as expressing the applicable Information Provider's current opinion or as representing current information. The Site Content and Linked Site Content may contain or provide credit, quality, risk and other ratings, research and generalized investment opinions obtained from various sources. You agree that such Site Content and Linked Site Content (i) are impersonal in nature and subject to change or withdrawal without notice, (ii) do not constitute legal, accounting, tax or investment advice, (iii) do not take into account your investment objectives, financial situation or particular needs, (iv) do not constitute a solicitation or recommendation for the purchase, sale, or holding of any financial instrument or product, or a representation that any investment strategy or product is suitable for you, (v) are meant to be reviewed in their entirety, including any footnotes, legal disclaimers, restrictions, or disclosures, and any copyright or proprietary notices, and (vi) are provided for informational purposes only. You also agree that (m) any disclaimers, restrictions, disclosure, or hedge clauses in such Site Content and Linked Site Content apply to any partial document or material in the same manner as they do the whole and will be deemed incorporated in the portion of any Site Content or Linked Site Content that you consult or download, (n) hypothetical or projected performance results (where permitted to be shown) have inherent limitations, with results that may under- or over-compensate for the impact, if any, of any number of market, political, and economic factors, and (o) no representation is being made that any reliance on any such Site Content or Linked Site Content will or is likely to achieve profits or losses or any particular results of any kind. You further agree that (x) no Information Provider is under any obligation to provide such Site Content or Linked Site Content to you, (y) if you receive such Site Content through the Site (or Linked Site Content through any Linked Sites) or other means, you may not receive such content at the same time as other customers of the applicable Information Provider or its affiliates, and (z) no Information Provider or its affiliates is under an obligation through the Site to undertake, and may without notice choose not to undertake, to advise you of changes in the Site Content made available through the Site (or any Linked Site Content made available through any Linked Site) or otherwise provided to you.
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5.1 Representations and Warranties.
5.1.2 Representations, Warranties and Agreements. You represent and warrant to, and agree with BROKER-DEALER and Zanbato (which representations, warranties and agreements shall be deemed repeated each time you access or use the Site), that:
(i) You are in compliance with all applicable laws in all material respects;
(ii) all information provided by you in writing to BROKER-DEALER and Zanbato (including all information contained in applications, questionnaires and information forms, and including information delivered via electronic means) is true and accurate in all material respects;
(iv) you have all Intellectual Property Rights (as defined in the Rulebook) in and to any information submitted by you to the Site, and its use of any software or equipment to access the Site (other than software or equipment provided by BROKER-DEALER or Zanbato) does not violate any third party's Intellectual Property Rights;
(vi) If you are a customer of BROKER-DEALER, alone or together with your Authorized Customer Delegee, you possess the sophistication, experience, knowledge and expertise in financial and business matters to make your own investment decisions and to properly assess the merits, risks and suitability of investing in, and entering into transactions on the Site;
(vii) If you are a customer of BROKER-DEALER, alone or together with your Authorized Customer Delegee, you are (x) capable of evaluating investment risks independently, both in general and with regard to particular transactions and investment strategies involving a security or securities and (y) will exercise independent judgment in evaluating the merits of all potential transactions;
(viii) you acknowledge, agree and understand that (x) all transactions entered into on the Site are unsolicited transactions, (y) no such transaction will be solicited or recommended by BROKER-DEALER or Zanbato and (z) your decision to enter into any transaction on the Site will be based on your own research and information, or on research and information obtained from a source other than the Site, BROKER-DEALER or Zanbato, and neither BROKER-DEALER, Zanbato nor any of their respective representatives will have any input into your decision to enter into such transaction;
(ix) If you are a customer of BROKER-DEALER, you are and will continue to be either (x) a qualified institutional buyer under Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), (y) a qualified purchaser, as defined in Section 2(a)(51) of the Investment Company Act, or (z) an accredited investor under Rule 501 of Regulation D of the Securities Act, subject to the right of BROKER-DEALER to impose higher accreditation standards to comply with suitability requirements;
(x) you shall comply with all applicable laws related to anti-money laundering and sanctions and (y) if you are a Customer of BROKER-DEALER, you shall ensure that you and your Authorized Customer Delegees follow such applicable laws with respect to your and their use of and access to the Site.
You shall notify BROKER-DEALER and Zanbato promptly in the event any of the foregoing representations and warranties become untrue at any time during the term of this Agreement.
5.1.3 Role of Zanbato. You acknowledge and agree that, notwithstanding anything to the contrary herein:
(i) Zanbato shall not, directly or indirectly, be a principal to any transaction on the Site or be responsible for, or otherwise guarantee, performance of any transaction entered into by you, and you shall proceed solely against the counterparty in that transaction, and not against Zanbato, to collect or recover any amounts owed to you or to enforce any of its rights in connection with, or as a result of, such transaction;
(iii) BROKER-DEALER and Zanbato may receive fees from subscribers to the Site representing both the buyer and seller in respect of a transaction effected through the Site; and
(iv) if you are a customer of BROKER-DEALER, the submission or posting of any Information to or on the Site by BROKER-DEALER, Zanbato or any authorized user of the Site shall not be deemed a recommendation by Zanbato or such authorized user that you enter into any particular transaction or that any particular transaction is suitable or appropriate for you.
6.1 Nondisclosure of Confidential Information. You agree to use reasonable care, but in no event no less than the same degree of care that you use to protect your own confidential and proprietary information of similar importance, and to prevent the unauthorized use, disclosure, publication or dissemination of proprietary, non-public, confidential information ("Confidential Information") of any Information Provider. You agree to accept an Information Provider's Confidential Information for the sole purpose of evaluation in connection with your business discussions with BROKER-DEALER. You agree not to disclose or use Confidential Information otherwise for your own or any third party's benefit without the prior written approval of an authorized representative of BROKER-DEALER in each instance. You may disclose Confidential Information if required by any judicial or governmental request, requirement or order; provided that you first take, if permitted to do so by the judicial or governmental authority with jurisdiction, reasonable steps to give the Information Provider sufficient prior notice in order to contest such request, requirement or order by notifying the Information Provider of such request. You may only disclose Confidential Information to your employees or agents with a need to know for the sole purpose of evaluation in connection with your business discussions with BROKER-DEALER and, in the case of agents, only to the extent that the agent has signed a non-disclosure and non-circumvention agreement at least as restrictive as this Agreement. Information will not be deemed Confidential Information of an Information Provider that (i) is already in your possession prior to disclosure by such Information Provider, (ii) that is or becomes generally available in the public domain other than as a result of unauthorized disclosure by you or your employees or agents, or (iii) is acquired by a third party not in violation of an obligation of secrecy to such Information Provider.
7.1 Bids, Offers and Firm Orders. "Bids" and “Offers" on the Site represent non-binding indications of interest submitted by Zanbato, BROKER-DEALER or one of their respective authorized registered representatives on behalf of their clients (unless such bids/offers are noted as “firm”). A “firm” bid or offer (each, a “Firm Order”) obligates the customer of Zanbato or BROKER-DEALER submitting the Firm Order to pay commissions or banking fees on introduction of a counter-party accepting the terms of their Firm Order, meaning these orders represent a higher level of commitment to transact. Bid and Offers may be for any class of equity security of an issuer and may be for blocks of shares held, exercizable, or held or to be held in special purpose vehicles. Rights of holders of the securities will vary, and transactions may be subject to transfer restrictions, including a right of first refusal by the issuer or others. Some issuers may restrict transfers in their securities to certain classes of investor. Specific information on a given ticket is available from Zanbato market operators through its Z-Chat function.
7.5 Governing Law and Arbitration. This Agreement shall be governed by the laws of the State of New York, without regard to its conflicts of laws principles. The parties shall attempt to resolve any disputes under this Agreement in an amicable manner by mediation before a single mediator administered by the American Arbitration Association ("AAA") or Judicial Arbitration & Mediation ("JAMS"), under their respective applicable commercial mediation rules, before resorting to arbitration. Thereafter, any unresolved dispute arising out of or relating to this Agreement shall be settled by binding and non-appealable arbitration administered by the AAA or JAMS under their respective Commercial Arbitration Rules, and judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction over the parties in the state or federal courts located in New York and the parties hereby consent to the personal jurisdiction and exclusive venue of these courts.