Nasdaq Private Market (NPM), a provider of secondary liquidity solutions, has launched the next-generation NPM SecondMarket platform, the first platform to offer this breadth of combined services across each segment of the private market ecosystem including private companies, employees, investors, and intermediaries.
“We are proud to officially launch SecondMarket. Our new platform will facilitate wealth creation events for millions of private company employees and investors. This disruptive technology benefits private companies and their employees by making transacting private shares faster, cheaper, easier, and more secure. SecondMarket will help unlock capital in the $3.5 trillion private market to power and accelerate the innovation economy,” said Tom Callahan, Chief Executive Officer, Nasdaq Private Market.
In designing the new SecondMarket, NPM drew upon a decade of experience from facilitating over $55 billion in volume for nearly 200,000 eligible private company employees and investors. It features custom tools and data for the most sophisticated CFO or professional investor, while at the same time delivering intuitive technology that simplifies the process of selling private shares for millions of private company employees. Importantly, transactions are facilitated in alignment with private companies.
As private companies increasingly embrace secondaries to offer essential liquidity to employees, NPM has significantly enhanced its functionality to meet their evolving needs. In parallel, NPM has invested millions of dollars into the new SecondMarket to better serve private market investors and employees alike. The objective is to promote innovation by bringing greater fairness, efficiency, and transparency to this essential multi-trillion-dollar asset class. Data privacy is of paramount importance at NPM, and the platform is designed to maintain the ongoing confidentiality of sensitive client data.
NPM SecondMarket consists of four main components:
The SecondMarket Company Workstation is NPM’s next-generation platform that streamlines the complex process of structuring and facilitating tenders for the purpose of offering liquidity to private company employees and investors. Its cutting-edge technology removes friction from the process, saving time and resources for CEOs and CFOs of the world’s most innovative private companies. Powerful new tools and data support and educate participants, structure programs, integrate with cap tables, manage order books, fast-track settlement, and facilitate payments.
The SecondMarket Employee Workstation empowers private company employees to sell shares via an end-to-end, electronic, self-service platform connected to an active network of institutional buyers. Current and former employees can easily add holdings, research and estimate the value of shares, anonymously negotiate with buyers, and have funds wired directly to their account. If companies permit share transfers, NPM helps shareholders sell shares for a low, flat 1% commission, a fraction of what is charged by other platforms. If companies do not permit share transfers, NPM will not facilitate trades.
The SecondMarket Investor Workstation is designed meet the needs of the most sophisticated professional investors. It features advanced yet easy-to-navigate trading tools, an intuitive IOI and watchlist submission process, instant portfolio upload functionality, essential and actionable data, real-time negotiations, and powerful, proprietary settlement technology to simplify the transfer of shares and funds, all for a low, flat 1% commission as well.
Tape D Data is a quantum leap forward in bringing transparency and fairness to the private markets, offering private share price estimates, reported trade levels, historic bids and offers, primary round history, 409A valuations, mutual fund marks, cap table analytics, and waterfall analysis. Its extensive document library provides investors with easy access to publicly available, critical, but hard-to-source documents such as Certificates of Incorporation, federal and state filings, Form Ds, and annual reports.
