The Private Market Gets More Transparent
At SharesPost, we believe that the more information and analysis private market investors have access to, the better the private market will be.
Over the last few years, our market has moved slowly but steadily in the direction of greater transparency. That’s primarily because leading late-stage growth companies have gotten gradually more comfortable with disclosure, but much remains to be done.
With that in mind, today we are launching SharesPost Research and publishing our first white paper. By enabling our clients with transaction data, valuation tools and investment research, SharesPost intends be among the first to shine a light on the fast growing companies of the new private market.
SharesPost Research is headed by Rohit Kulkarni, who brings almost 20 years of experience working in Technology and Investment Banking. Formerly a senior analyst with the Internet team at RBC Capital Markets, he has been a part of the No. 1 ranked equity research team on Wall Street and recently recognized by the Institutional Investor magazine for his insights in the internet sector. Now he turns his focus to the private companies of the emerging late-stage venture asset class. The SharesPost Research team’s goal is to deliver institutional quality research and analysis to all market participants through the SharesPost platform.
Download The White Paper
SharesPost Research’s first white paper, Zero to One Billion, Demystifying the Unicorn, lays the foundation for our coverage of the private market. It crunches the numbers to answer questions like:
- What is the growth rate in aggregate unicorn market cap since 2013? (Answer: ~500%)
- What percentage of current unicorns should we expect to exit with their unicorn status intact? (Answer: ~70%)
- What is the median duration for US-based VC-backed companies to reach $1B valuation since incorporation? (Answer: ~ 76 months)
Looking Over The Horizon
In the future, SharesPost Research will report on high-level trends in the venture asset class by leveraging its unique, proprietary transaction data generated from thousands of private market transactions in the shares of more than 150 high-profile companies. SharesPost Research will also be informed by access to the SharesPost transaction desk, which serves as a liquidity hub to the private market. Buyers and sellers of venture-backed companies work with SharesPost each day, providing indications of interest in order to connect with the other side of a trade. As a result, SharesPost Research will have insight into market trends even before they are reflected in closed transactions.
We will also be among the first to write research reports on the growth companies driving the performance of the private market. Rohit and his team will work with founders and companies to understand and objectively communicate their vision for the future. Focusing primarily on the companies comprising the SharesPost100 List, the reports will seek to make clear each company's strategy, business model, risk and opportunities and the other factors driving its valuation. SharesPost clients will be able to discuss specific investment opportunities and valuation questions with our research staff, exchanging ideas, challenging assumptions, and so make smarter, better informed investments.
Our ambition is to make the launch of SharesPost Research not just a milestone for SharesPost, but also for the private market generally. As others follow, the venture asset class will become less and less opaque, valuations will be better informed and investors will increasingly feel they have what they need to invest with confidence.
Cautionary Note Regarding Forward-Looking Statements
The matters described herein contain forward-looking statements. These statements include, but are not limited to, statements about research on late-stage, venture-backed companies. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond SharesPost’s control. These factors include, but are not limited to, factors detailed in the white paper. We undertake no obligation to release any revisions to any forward-looking statements.