Private Sales to Increase in Venture Backed Public and Private Companies in 2020 | NYPPEX
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Market Commentary
Shareholder Clients

NYPPEX: Private Sales of Restricted Stock to Increase in 2020
as Shareholders Elect to Not Wait for Lock-Ups to Expire

February 25, 2020

  • In 2019, venture-backed IPO performance was mixed as more deals demonstrated that private market valuations exceeded the public markets.
  • Some noteworthy disappointments from IPO through February 14, 2020 were:
    Lyft 42.9%
    Slack 35.9%
    Smile Direct 30.2%
  • Of note, WeWork’s valuation declined -78.7% i.e. $47b to $10b and the IPO was pulled. According to Preqin, 74% of surveyed investors believe we are at the peak of the equity market cycle.
  • For 2020, NYPPEX estimates that private sales of restricted stock will increase in venture-backed public and private companies, as shareholders elect to not wait for an IPO or risk after-market performance before lock-ups expire.
  • We believe these goals are best achieved through customized solutions, insightful analytics and deploying a proactive targeted marketing approach.
  • Accredited investors interested in a confidential discussion are welcome to contact Frank Nunziato, Vice President at +1 (914) 305-2818 or by clicking here.
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