- Market InsightsMarket Reports
June 2023
Private Market Report - June 2023
Bouncing along the bottom
We observed a continued rise in activity on the Hiive platform during the month of May, with the total value of securities listed for sale, the total number of live orders, and the number of private issuers with buy/sell activity on-platform all rising.
Meanwhile, overall market conditions remained weak with most metrics continuing to trend down. Private markets remained defiant in the face of buoyant public markets where values have been steadily rising since early in the year. This ongoing divergence might be explained by the typical 6-9 month lag between public and private markets. And if public markets did indeed reach a bottom late last year, then the historic lag could also suggest that private markets are bottoming now.
Marketplace highlights
382
Private issuers with activity on the platform during the month
1,978
Live orders to buy or sell on platform
54.3%
Average transaction price as % of last known funding round
$1.51Bn
Value of listings for sale on the platform
Market momentum
Median bid and ask
The median bid vs last round value appears to have stabilized somewhat during the month of May at a 59.6% discount, compared with 61.1% discount in April and 58.1% in March. Meanwhile sellers became even more motivated as the average asking price dropped almost 4% to a 38.3% discount to last primary raise compared with a 34.7% discount in April and 33.2% in March.
The drop in ask prices resulted in a similar drop in transaction prices, with the latter reaching a staggering new low of 54.3% compared to last round value (or a 45.7% discount).
Bid/ask ratio
In another sign that buyers are coming back into the market, the bid-ask ratio, at 0.45, remained essentially flat in May compared with 0.44 in April. A continued flattening of the bid-ask ratio could be a sign that the market has reached a bottom, but we will need a few more months’ data to determine if this is indeed the case.
Average bid/ask spread
Average bid-ask spread narrowed slightly to 28.7% in May compared with 29.7% in April, but this reading remained quite elevated and close to a cyclical high. Liquidity in the VC secondary market will remain low until the bid ask spread narrows significantly from here.
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