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.
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