Buyers remained in short supply in October as the bid/ask ratio on Hiive fell to an all-time low of 0.34, with listings outnumbering bids by nearly 3-to-1. The average transaction price was steady at 53.9% of the last round valuation (translating to an average discount of 46.1%), reflecting limited change in the market overall.
The bid/ask spread tightened slightly by 2.4% from the previous month to 26.6%, as seller expectations continued their downward trend of the past twelve months. While it would not be completely unrealistic to anticipate some recovery in enthusiasm on the buy-side as central banks begin to signal pause in their rate-hiking cycles, the possibility of a short term market rebound remains remote.
Amidst a generally lacklustre market, Hiive maintained a solid upward trajectory on several fronts. The number of accepted bids continued to climb month over month, exceeding 200 in October as the total value of listings for sale exceeded the $2 billion mark for the first time ever. Additionally, October’s 3,263 live orders to buy or sell on the platform across 611 different pre-IPO companies were also all-time highs, signalling growing depth and breadth of our marketplace.
Private issuers with activity on the platform during the month
Live orders to buy or sell on platform
Average transaction price as % of last known funding round
Value of listings for sale on the platform
October’s median bid, quoted as a discount to the last round valuation, was again largely unchanged at 60.1% (a marginal decrease from 59.5% in September). Similarly, the median ask in October was steady at 41.8%, down slightly from 40.9% in September. Both the median bid and median ask have been relatively stable near 60% and 40%, respectively, for the past five months after a steep decline in early in the year.
The average transaction price, as a percentage of the last round value, remained lower after a large drop in the prior month. Buyers and sellers found common ground at 53.9% of the last round price, which is slightly above September’s 52.1% mark but still solidly below the trend from the first half of 2023.
In October, the bid/ask ratio fell materially to 0.34, down from 0.4 the month before. Listings outnumbered bids nearly 3-to-1, driving the bid/ask ratio to its lowest level since the summer of 2022 in another sign of a sustained buyer’s market.
The average bid/ask spread tightened slightly in the month, contracting from 29.0% in September to 26.6% in October. This change signals a marginal improvement in liquidity. While bids remain relatively scarce, one caveat to note is that they often involve larger blocks filled by several sell orders at once. What remains true however is that buyers face little competition in the market in all but the most sought after of securities, entrenching the market in their favour.
Betterup witnessed a significant flurry in activity at the end of the month with seven accepted bids in the final week. Demand for the company’s shares remains robust in spite of a recent round of layoffs, albeit at an average discount of 70% to the company’s $4.7 billion valuation in 2021 when it last raised a primary round.
Fourkites emerged as one of the most active securities in October with six bids accepted. In spite of the trouble in the trade and logistics industry, the company has seen persistent demand across the past few months.
Outdoorsy saw a significant amount of activity on Hiive with several trades crossing in October. The outdoor travel marketplace appears to be extending its footprint in the sector having recently announced the launch of a $30 million dollar fund to support eligible entrepreneurs looking to purchase safari glamping tents.
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