Table of Contents

Executive Summary

Reported Holdings as of October 31st, 2020:

ZX Market Update since November 30th, 2020:

  • December ZX ticket volumes skewed to the demand side for the sixth straight month, with ZX seeing 53% more bids than offers.
  • ZX transactions priced from a 59% discount to a 101% premium to most recent financings, the largest range to date.

Heat Map: October 31th, 2020 Reporting Period

-2.00%

Appreciation/Depreciation of All Reported Holdings1

2.00%

Average Mark-Up/Mark-Down Across All Reported Holdings2

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

Trend Reversal - Positive3 (# = consecutive prior qtrs marked down or flat)
WeWork
8
Didi Chuxing
5
Wheels Up
4
Convoy
3
Trend Reversal - Negative4 (# = consecutive prior qtrs marked up or flat)
Dataminr
8
Cibus
6
Bolt Threads
5
Grand Rounds
5
ZX Firm Bids at Greatest Premium to Latest Reported Median Holding Value5
Databricks
+39.3%
SpaceX
+29.6%
Epic Games
+17.4%
ZX Firm Offers at Greatest Discount to Latest Reported Median Holding Value5
Reddit
-57.5%
Rent the Runway
-18.3%
Bolt Threads
-8.5%

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

After four consecutive months of reported appreciation, holdings in the October 31st period depreciated 2.0%, primarily driven by large mark-downs in JUUL, Butterfly Network and Ant Financial. However, the period still saw a 1.5 advance/decline ratio, with 3 companies gaining for every 2 in the red.

Nuvation Bio led gainers with the largest mark-up, followed by GitLab, Taboola, and Warby Parker. Prosetta Bio, Magic Leap, Butterfly Network, and JUUL saw the period’s largest mark-downs.

WeWork saw its first positive reversal in 24 months, while Didi Chuxing, Wheels Up and Convoy all saw positive reversals for the first time in 15, 12, and 9 months, respectively. Dataminr saw a negative reversal for the first time in 2 years, while Cibus, Bolt Threads and Grand Rounds saw negative reversals for the first time in over a year.

ZX Market Updates Since Reporting Date

December ZX ticket volumes skewed to the demand side for the sixth straight month, with ZX seeing 53% more bids than offers. The discrepancy grew as compared to November, which saw only 9% more bids than offers. ZX transactions priced from a 59% discount to a 101% premium to most recent financings, the largest range to date.

On average, ZX Firm Buy Orders sit at a 29% premium to the October 31st median holding values, highlighted by bids in Databricks, SpaceX and Epic Games at 39.3%, 29.6% and 17.4% respectively. ZX Firm Sell Orders are being offered at a 28.1% average discount to October 31st median holding values with Reddit, Rent the Runway and Bolt Threads representing the largest discounts at 57.5%, 18.3% and 8.5%, 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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