Table of Contents

Executive Summary

Reported Holdings as of April 30, 2020:

  • In April reporting holders depreciated their private portfolios 7.59%, with an almost 1:3 advance-decline ratio reflecting broad-based headwinds.
  • Sentiment up:
  • Sentiment down:

ZX Market Update since April 30, 2020:

  • 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 Edtech that are seen as benefiting from Covid-19 fallout continue to lead the market.
  • Bids are starting to rise for category leaders in more depressed sectors.
  • Demand and pricing are increasing for companies expected to list in the near term.

Heat Map: April 30, 2020 Reporting Period

-7.59%

Appreciation/Depreciation of All Reported Holdings1

-9.21%

Average Mark-Up/Mark-Down Across All Reported Holdings2
Lookout
38.26%
Tempus Labs
26.8%
Grand Rounds
21.79%
Coupang
18.87%
23andMe
16.88%
Sonder
11.45%
Oscar Health
9.18%
Bolt Threads
7.19%
Outset Medical
6.84%
Databricks
5.4%
Tanium
4.85%
Blink Health
3.89%
SpaceX
2.8%
The Honest Company
0.27%
Harmony Bio
0.0%
Nuvation Bio
0.0%
Stripe
-0.02%
Convoy
-0.15%
Grab
-0.42%
SoFi
-1.29%
JUUL
-2.64%
Klarna
-2.72%
Sharecare
-4.36%
Generation Bio
-4.46%
Immunocore
-4.61%
Dataminr
-6.52%
Warby Parker
-7.52%
Ant Financial
-8.58%
Wish
-10.05%
Wheels Up
-11.23%
Palantir
-11.25%
Sweetgreen
-11.7%
MarkLogic
-11.7%
Starry
-11.88%
Didi Chuxing
-12.83%
Rubicon Global
-15.05%
Zenefits
-15.42%
ACV Auctions
-15.74%
Reddit
-16.23%
Taboola
-19.06%
Rent the Runway
-19.3%
Malwarebytes
-21.72%
Riskified
-22.19%
UiPath
-25.93%
Allbirds
-28.04%
AgBiome
-28.99%
Tory Burch
-29.3%
Bird
-31.02%
Deliveroo
-33.94%
Lime
-34.02%
Delphix
-35.04%
Compass
-35.54%
Topgolf
-38.07%
Airbnb
-42.44%
WeWork
-46.17%
Magic Leap
-79.48%

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

Notable Adjustments to Individual Positions

Largest % Mark-Up
Lookout
+798.2%
Tempus Labs
+26.8%
Grand Rounds
+22.0%
Coupang
+18.9%
Largest % Mark-Down
Magic Leap
-80.0%
Endeavor
-49.8%
WeWork
-46.2%
Airbnb
-43.3%
Trend Reversal - Positive3 (# = consecutive prior qtrs marked down or flat)
Lookout
2
Sonder
2
-
-
-
-
Trend Reversal - Negative4 (# = consecutive prior qtrs marked up or flat)
Starry
12
Compass
8
Lime
6
Didi Chuxing
5
ZX Firm Bids at Greatest Premium to Latest Reported Median Holding Value5
-
-
-
-
-
-
-
-
ZX Firm Offers at Greatest Discount to Latest Reported Median Holding Value5
Reddit
-28.0%
Bolt Threads
-21.1%
Rent the Runway
-17.3%
Wish
-14.5%

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

Commentary

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.

ZX Market Updates Since Reporting Date

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.

Demand and pricing are also increasing for companies anticipated to list, such as Asana, Palantir, and Procore.

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%.

What is a ZX Firm Order?

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.

Disclaimer

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.

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