Table of Contents

Executive Summary

Reported Holdings as of August 31st, 2020:

  • For a third consecutive month, reporting holders marked up their private portfolios. August’s advance of 6.8% was lower than July’s 7.6% appreciation, despite a better than 2:1 advance-decline ratio.
  • Sentiment up:
  • Sentiment down:

ZX Market Update since September 30th, 2020:

  • Demand for late stage private companies persisted in October, with ZX receiving 80% more bids than offers.
  • ZX transactions priced from a 0% discount to a 53% premium to most recent financing.

Heat Map: August 31st, 2020 Reporting Period

6.8%

Appreciation/Depreciation of All Reported Holdings1

9.10%

Average Mark-Up/Mark-Down Across All Reported Holdings2
Freenome
96.1%
Farmers Business Network
91.7%
Seismic
89.6%
Snowflake
81.1%
Postmates
68.3%
UiPath
52.3%
Reddit
45.5%
Doximity
44.4%
Rivian
44.2%
HaulHub
35.1%
Allbirds
30.8%
Ant Financial
28.8%
Warby Parker
26.0%
1stdibs
25.9%
Goop
25.4%
AvidXchange
25.0%
LegalZoom
25.0%
Rover
24.5%
Coupang
22.8%
SpaceX
22.7%
DoorDash
21.0%
Castle Creek
20.9%
Codiak Bio
20.8%
Dragonfly Therapeutics
20.8%
Faraday Pharma
20.7%
SnapDeal
20.3%
Outset Medical
19.6%
Taboola
19.1%
Starry
17.2%
Heal
16.7%
Toast
11.1%
Druva
11.1%
Bolt Threads
11.0%
ACV Auctions
10.4%
Lookout
9.3%
Airbnb
9.1%
C3
9.0%
MOD Pizza
7.6%
Didi Chuxing
5.2%
WeWork
5.1%
Sweetgreen
3.3%
Clover Health
2.6%
The Honest Company
2.4%
Deliveroo
2.0%
Essence Group
0.3%
Plex Systems
0.0%
Tempus Labs
0.0%
Cibus
0.0%
Stripe
0.0%
Atea Pharma
0.0%
Sonder
0.0%
Dataminr
0.0%
Kardium
0.0%
Verily
0.0%
GRAIL
0.0%
Nuvation Bio
0.0%
Ginkgo Bioworks
0.0%
Insitro
0.0%
Aurora Innovation
0.0%
Waymo
0.0%
Seer
0.0%
Checkr
0.0%
AgBiome
0.0%
Rent the Runway
0.0%
ServiceTitan
0.0%
D2iQ
0.0%
RefleXion Medical
0.0%
Element Bio
0.0%
Wheels Up
0.0%
MasterClass
0.0%
Convoy
-3.8%
JUUL
-4.4%
Bird
-5.6%
Tory Burch
-7.4%
Butterfly Network
-9.7%
Topgolf
-9.7%
MarkLogic
-10.5%
Blink Health
-10.8%
Riskified
-12.3%
Palantir
-17.8%
Moda Operandi
-21.7%
Oscar Health
-24.4%
Endeavor
-27.3%
Zenefits
-30.7%
23andMe
-31.6%
Yumanity
-44.8%
Magic Leap
-70.7%
Intarcia Therapeutics
-85.7%

This report is based on data reported by 200+ 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
Snowflake
+178.6%
Freenome
+96.1%
Farmers Business Network
+91.7%
Seismic
+89.6%
Largest % Mark-Down
Intarcia Therapeutics
-100.0%
Magic Leap
-100.0%
Lime
-91.7%
Yumanity
-45.0%
Trend Reversal - Positive3 (# = consecutive prior qtrs marked down or flat)
Rover
8
LegalZoom
7
Allbirds
6
1stdibs
5
Trend Reversal - Negative4 (# = consecutive prior qtrs marked up or flat)
MarkLogic
3
Blink Health
2
Convoy
2
Oscar Health
2
ZX Firm Bids at Greatest Premium to Latest Reported Median Holding Value5
Airbnb
+29.1%
SpaceX
+18.5%
Didi Chuxing
-67.0%
-
-
ZX Firm Offers at Greatest Discount to Latest Reported Median Holding Value5
Reddit
-55.1%
Bolt Threads
-31.8%
-
-
-
-

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

Reported holdings appreciated 6.8% in August, marking the third consecutive monthly gain. While August’s 6.8% appreciation lagged July’s 7.6% gain, more than two companies advanced for every decliner. The gains occurred despite large mark-downs by individual funds in Lime, 23andMe and Intarcia Therapeutics.

Freenome led gainers with the largest average mark-up, followed by Farmers Business Network, Seismic and Snowflake. Intarcia Therapeutics, Magic Leap, Yumanity and 23andMe saw the period’s largest average mark-downs.

On an absolute dollar basis, SpaceX contributed the largest portfolio appreciations, followed by Ant Financial, Outset Medical and Reddit. Snowflake saw a notable mark-up by only a single fund two weeks ahead of its IPO. Intarcia Therapeutics, Oscar Health, Zenefits and Tory Burch contributed the largest dollar losses. One reporting holder wrote-off, Intarcia Therapeutics.

MarkLogic, Blink Health, Convoy and Oscar Health all saw negative reversals and their first mark downs by individual funds in the past 9 months. Rover saw a positive reversal for the first time in 2 years. Positive reversals were also seen in LegalZoom, Allbirds and 1stdibs.

ZX Market Updates Since Reporting Date

Demand for late stage private companies persisted in October, with ZX receiving 80% more bids than offers. ZX transactions priced from a 0% discount to a 53% premium to most recent financings, continuing the trend from September of no transactions occurring at a discount to the most recent primary financing levels. Both data points support the observations that the market continues to skew in favor of sellers.

On average, ZX Firm Buy Orders sit at a 6.5% discount to August 31st median holding values, brought down by bids in Didi Chuxing. Other notable bids include Airbnb and SpaceX, being bid at 29.1% and 18.5% premiums to their August median holding values, respectively. ZX Firm Sell Orders are being offered at a 43.5% average discount to August 31st median holding values with Reddit and Bolt Threads representing the largest discounts to median holding values at -55.1% and -31.8% respectively.

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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