Reported holdings period ending December 31st, 2020:
ZX Market Update as of February 28th, 2021:
1 Dollar-weighted return on all reported holdings
2 Equal-weighted mark-up or mark-down across all reported holdings
3 Positive Trend Reversal reflects an individual holding marked up after consecutive quarterly periods marked down or flat
4 Negative Trend Reversal reflects an individual holding marked down after consecutive quarterly periods marked up or flat
| Company | Normalized Std Dev5 | $ Weighted Avg | Max | Min |
|---|---|---|---|---|
| Intarcia Therapeutics | 17.05 | $0.01 | $3.00 | $0.00 |
| Magic Leap | 1.49 | $1.26 | $11.52 | $0.00 |
| D2iQ | 0.60 | $5.17 | $9.11 | $2.23 |
| Proterra | 0.57 | $5.49 | $10.00 | $3.31 |
| Lookout | 0.51 | $7.49 | $11.63 | $3.10 |
5 Normalized Standard Deviation is used to express the measure of spread across reported marks and allows for comparison between companies independent of their price per share based on a dollar-weighted average.
6 Premium and Discount agnostic to share class
Reporting holders marked up their private portfolios 11.7% in the December reporting period, finishing 2020 with the largest single jump of the year. The gains were broad-based, with nearly three companies advancing for every one marked down.
The reporting period saw three companies marked-up by 100% or more Nuvation Bio led gainers, followed by GitLab and Tempus Labs. Intarcia Therapeutics, I-Pulse and Bird saw the period’s largest mark-downs.
Grab and WeWork saw positive reversals for the first time in 2 years while Kardium, Delphix and Didi Chuxing all saw positive reversals for the first time in a year or more. Prosper Marketplace and Musely saw negative reversals for the first time in more than 3 years, while Cohesity, Ant Financial and Honest Co saw negative reversals for the first time in over 2 years.
Intarcia Therapeutics and Magic Leap once again saw the period’s highest variance across funds in reported marks. Several funds continued writing off their investments in both companies while others were more optimistic. D2iQ, Proterra and Lookout rounded out the top 5 for the highest variance in reported marks.
ZX ticket volumes continued to skew further to the demand side in February, with ZX seeing 114% more bids than asks. February marked the eighth consecutive month of bid volume exceeding ask volume. February ZX transactions priced from a 65% discount to a 123% premium to most recent financings, reflecting buyers continued willingness to purchase stock at premiums to the companies’ last rounds.
On average, ZX Firm Buy Orders sit at a 27% premium to December 31st median holding values, highlighted by bids in Robinhood, UiPath and SpaceX at 149.2%, 89.1% and 83.3% respectively. On the sell-side, Ripple and Bolt Threads are offered at 44.6% and 9.4% discounts to their December median holding values.
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.
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.
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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