Reported Holdings as of June 30th, 2020:
ZX Market Update since June 30th, 2020:
This report is based on data reported by 214 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 moved higher for the first time since the onset of Covid-19 in this June 30th, 2020 reporting period. Reporting holders marked up their private portfolios 3.5%, with nearly four companies advancing for every decliner. This contrasts March, April and May which saw advance-decline ratios under 1. The gains occurred despite write-offs in high-profile companies like Magic Leap and WeWork.
Butterfly Network ($20.55/share) led gainers, followed by Seismic ($49.68/share), Marqeta ($8.34-$8.72/share), and Affirm ($16.94/share). Proteus Health ($0.00/share), Magic Leap ($0.00-$11.52/share), Intarcia Therapeutics ($4.89/share) and WeWork ($0.00-$7.85/share) saw the period’s largest declines.
Reported holdings appreciated 3.5% this reporting period. SpaceX ($219.97-$229.00/share) contributed the largest dollar gains to portfolios, followed by Palantir ($5.29-$8.16/share), Ant Financial ($6.99-$11.39/share), and Butterfly Network. Magic Leap, Intarcia Therapeutics, WeWork, and Airbnb ($49.50-$80.33/share) contributed the largest dollar losses.
23andMe ($10.43-$23.16/share), Hims ($3.42/share), and XANT.ai ($4.11/share) saw negative reversals, marking the first time they have been marked down by individual funds in the last 12, 9, and 9 months, respectively. Positive reversals in Omio ($113.04/share), Clover Health ($4.22/share), Deliveroo ($388.65-$417.90/share), Oscar Health ($6.02-$10.52/share), Outset Medical ($2.20-$3.83/share) and Tanium ($9.20-$11.40/share) reflected recent tailwinds for Healthcare, Consumer Goods & Services and Privacy & Security sectors.
Secondary trading activity remained brisk through the end of the summer, driven by heightened activity in “pre-IPO” companies expected to list in the coming months.
August saw ZX transaction prices range from an 18.3% discount to a 94.7% premium to most recent financings, a materially higher range than in preceding months. The higher range was, in-part, driven by investor willingness to price based on expected listing prices, rather than prior financing levels. On a sector basis, eCommerce, Data & Analytics, and Enterprise SaaS companies continued to attract the most interest.
On average, ZX Firm Buy Orders are bidding a 54.3% premium to June 30th median holding values, which includes Airbnb ($49.50-$80.33/Share), SpaceX ($219.97-$229/Share) and Robinhood ($12.42/Share) at 76.4%, 45.6% and 40.9% respectively. ZX Firm Sell Orders are being offered at an average 53.1% discount to June 30th median holding values, with Ripple ($57.35/Share), Reddit ($45.49/Share) and XANT.ai ($4.11/Share) representing the largest discounts to median holding value at -71.7%, -51.6% and -36% 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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