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April 2023
Private Market Report - April 2023
A new market normal
Market activity surged on the Hiive platform in March with both the value of securities for sale and the total number of orders on platform reaching record levels of $1.33 billion and 1,504 respectively during the month. The breadth of our marketplace also reached a new high with 295 active securities in March. This suggests that buyers and sellers are even more active following the failure of Silicon Valley Bank.
However this jump in activity doesn’t look like a turning point for the market. Rather it seems that participants are adapting to a new market baseline as both pricing and market momentum remained flat during the month, and the median bid vs. last round actually declined even further vs. prior months. If anything, this looks like a new normal for the market.
295
Private issuers with activity on the platform during the month
1,504
Live orders to buy or sell on platform
62.1%
Average transaction price as % of last known funding round
$1.33Bn
Value of listings for sale on the platform
Market momentum
Median bid and ask
The hoped-for stabilization of private markets in February appears to have faltered as the market for startup shares remained under relentless pressure in March. This is in spite of relatively buoyant public markets. The impact of SVB’s failure on the venture ecosystem could explain this divergence as the median bid was placed at a 58.1% discount to the last round value, a material drop from 51.7% in February.
Meanwhile sellers seem at least as motivated as they were in February, with the median discount sought by sellers increasing by a narrower 3%. Market momentum is flat to negative and there is no evidence of a near-term rebound in our platform data.
A jump in activity on the Hiive platform in February may be better explained by continued growth in platform adoption than by an actual increase in overall market participation.
Bid/ask ratio
The ratio of the number of bids to asks on the Hiive platform remained largely unchanged. This was despite a significantly higher total number of orders this month, and a net increase in both buyers and sellers.
Average bid/ask spread
The bid/ask spread narrowed further by 70 basis points on a month-over-month basis, suggesting that liquidity was essentially flat during the period. The average spread between orders to buy and orders to sell remained elevated.
Activity on Hiive reached new highs in spite of the SVB crisis but this may also reflect growing adoption of the platform by market participants, rather than an increase in liquidity. Continuing downward pressure on bids will put a ceiling on liquidity for the time being.
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