Reported Holdings as of September 30th, 2020:
ZX Market Update since September 30th, 2020:
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
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
Reported holdings recorded their fourth consecutive month of gains in September, appreciating 7.4% over the period. Gains were driven by large mark-ups in Marqeta, SpaceX and Ant Financial. While September’s 7.4% gain exceeded August’s 6.8%, the breadth of the gains narrowed with the advance/decline ratio falling to near 1:1.
Unqork led gainers with the largest mark-up, followed by Farmers Business Network, Toast, and ChargePoint. Intarcia Therapeutics, XANT.ai, Optimizely, and Nanigans saw the period’s largest mark-downs.
On an absolute dollar basis, SpaceX contributed the largest appreciation to portfolios, followed by Airbnb, Ant Financial, and Marqeta. Oscar Health, Butterfly Network, Deliveroo, and Intarcia Therapeutics contributed the largest dollar losses. Of note, Modumetal and Intarcia Therapeutics saw several complete write-offs.
SoFi saw its first positive reversal in 3 years, while Wag, Aurora Innovation, Farmers Business Network, WeWork and Airbnb all saw positive reversals for the first time in a year or more. Enjoy saw a negative reversal for the first time in over 2 years, while Innovium and Lookout saw negative reversals for the first time in 9 months.
November ZX ticket volume continued to skew to the demand side, with ZX seeing 9% more bids than offers through the month. While this reflects continued strong demand for private company exposure, it also represents a more balanced market than October, which saw 80% more bids than offers. ZX transactions priced from a 77% discount to a 74% premium to most recent financings, which suggests the continued heightened levels of demand are benefitting some companies more than others.
On average, ZX Firm Buy Orders sit at a 32% premium to September 30th median holding values, highlighted by bids in Databricks, Affirm and SpaceX at 56.2%, 38.3% and 20.4% respectively. ZX Firm Sell Orders are being offered at a 40.4% average discount to September 30th median holding values with Reddit, Ripple and Fundbox representing the largest discounts to median holding values at -54.6%, -46.8% and -32.8%% respectively.
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.
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