Insights

Our mission is to help institutional and individual investors make smart investment decisions by leveraging our proprietary data and insight to identify trends and opportunities.

Uber and the Ride-Sharing Market
Reports & Studies

Uber & the Ride-Sharing Market: The $650 Billion Question

EXCLUSIVE IN-DEPTH REPORT The top 5 riding-share apps, including Uber and Lyft, are today a $650 billion market and could experience 10x revenue growth in the next decade and potentially disrupt several industries involved in human mobility. Report includes a survey of 5,500 mobile phone users about their experiences using ride-sharing apps.

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1st Annual Private Tech Investor Survey
Reports & Studies

1st Annual Private Tech Investor Survey

Highlights From SharesPost’s 1st Annual Private Tech Investor Survey

We are pleased to announce the results of SharesPost’s first private tech investor sentiment survey. Over 600 accredited individual and institutional tech investors let us know their expectations for the new year. Survey participants represented a wide range of private and public market investment styles. Although such surveys admittedly have a degree of sampling bias, the results were surprisingly consistent. In short, investors of all types are predominantly bullish about the prospects for tech companies in 2017.

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The Rise of Unicorn Funds
Whitepaper

The Rise of Unicorn Funds
Examining the Supply of Private Growth Capital

In our recent reports, we highlighted key trends and factors leading up to the proliferation of “Unicorns” and emergence of the new “Private Technology Growth” asset class. As a next step, we analyze market forces driving further proliferation of “Unicorns” coupled with greater investor allocations towards the new Private Technology Growth Asset class which contains them.

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Private Tech Growth Emerges as an Asset Class
Whitepaper

Private Tech Growth Emerges as an Asset Class

Analysis of Private Tech Growth asset class confirms massive growth in $100MM+ equity financings is replacing the traditional tech IPO.

Though everyone in the venture community is cognizant of the growth in the number and size of mega-private financings (i.e., $100MM+), we wanted to present our clients with a much clearer understanding of the trend and how it is impacting the capital markets for emerging growth technology companies.

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Zero To One Billion: Demystifying The Unicorn
Whitepaper

Zero to One Billion: Demystifying the Unicorn

Since the Great Recession, the global private tech ecosystem has witnessed a remarkable paradigm shift. The advent, growth, and proliferation of “unicorns” have led to a fundamental change in the way all stakeholders of the tech ecosystem inter-operate. While this unicorn phenomenon has been in the making for the past six to seven years, the ongoing private investing and fundraising trends seem to imply that it could be another decade for the Unicorn gold dust to settle. And, another five years for all the stakeholders to fully realize lessons learned from this fundamental paradigm shift.
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Understanding the J-Curve
Other

Understanding the J-Curve

The J-Curve is a graphic representation of the relationship between a private company’s valuation and its life-stage or “term." It shows an average trend or pattern often experienced by a portfolio of private companies from inception and initial funding through becoming public or being acquired. The J-Curve is commonly broken into 3 stages – the Early Venture Capital Stage, the Growth/Late Stage and the Exit Stage. These stages are designed to define where a company is in its life cycle and suggest common valuations to time ratios. This brief examines each phase in effort to provide the reader a better understanding of the life cycle of start-up companies.
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Investing in Private Growth Companies - Historical Return Analysis and Asset Allocation Strategies: Updated 2014
Whitepaper

Investing in Private Growth Companies - Historical Return Analysis and Asset Allocation Strategies: Updated 2014

Data over the past four-and-a-half years shows that an investment in private growth companies can potentially help investors achieve growth with little correlation to the broader markets. 

SharesPost is pleased to offer an updated white paper, "Investing in Private Growth Companies: Historical Return Analysis and Asset Allocation Strategies."
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Research Brief: Private Growth Company Investing
Whitepaper

Research Brief: Private Growth Company Investing

Although Venture Capital funds have been around since the late 1950’s, venture investing has generally been out of reach of the average investor. Venture Capital (VC) firms typically raise funds in private placements from institutional investors like pension and endowment funds as well as family offices. Furthermore, VC returns are highly concentrated in the top decile of VC firms, and access to these select funds is extremely limited.
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Analyzing the Analysts: Wall Street Equity Research 10 Years after the Global Settlement
Whitepaper

Analyzing the Analysts: Wall Street Equity Research 10 Years after the Global Settlement

In the ten years since the Global Settlement, equity research has undergone a massive transformation, particularly as it concerns private and small-cap public companies. This paper from Keating Investments reviews the impact of the Global Settlement, the changing nature of equity research, and policy recommendations to restore coverage of small companies for the benefit of issuers and investors alike.
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Whitepaper

The Stock Option Tax Dilemma Faced by Pre-IPO Company Employees

When a company goes public or experiences a liquidity event, many employees with unexercised stock options will begin to enthusiastically calculate their windfall. However, their enthusiasm can be quickly dampened once they understand the tax impact. This paper outlines the difference between qualified (ISO) and non-qualified (NQSO) stock options, how each is taxed, the potential impact of exercising your options now versus later, and the risks of exercising early with your own savings.
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Reports & Studies

Financing Innovation: Why Emerging Secondary Markets are Good for the Venture Capital Economy

Silicon Valley is admired around the world as an engine of economic value creation. Many aspire to emulate it. Exemplified by product, service and business model innovation, and driven by a superb pool of entrepreneurial talent, it is the world's greatest concentration of venture capital. But for close observers, there is trouble in River City. Venture capital returns for the past decade are uneven at best and insufficient for the risk involved.
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Legislation

The JOBS Act

The Jumpstart Our Business Startups Act (the “JOBS Act”) is a critical shift in the regulatory framework governing private companies in the capital markets. In each stage of a company’s lifecycle, from the entrepreneur’s initial startup, through build-out and beta test, growth, and late stage “emerging growth” companies, the JOBS Act is intended to facilitate capital formation.
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Other

The Jumpstart Our Business Startups Act Bill

A bill enacted to increase American job creation and economic growth by improving access to the public capital markets for emerging growth companies.
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Whitepaper

Alternative to a Tender Offer

Some issuers are considering combining a financing and a tender offer as a way to fund controlled liquidity for their employees. This document briefly discusses the pros and cons of this strategy and compares it to the use of a Private Investor Portal on the SharesPost platform to accomplish the same objectives.
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Primer on Secondary Market Securities Law

The laws and regulations governing the secondary market for private company stock are continuing to evolve. SharesPost is committed to assisting market participants, including companies and investors, in gaining the knowledge to enable informed participation in this increasingly sophisticated marketplace.

Consistent with its role as a secondary market leader, SharesPost has prepared this introductory primer on secondary market securities law so that its members and issuers can become familiar with the basics of how this market is regulated and how SharesPost complies with pertinent laws and regulations. Our goal is to offer clear responses to frequently asked questions based on current law and practices.
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Whitepaper

A Guide to Secondary Transactions

Alternative Paths to Liquidity in Private Companies by Ken Sawyer, Zack Scott, Balazs Veress of Saints Capital.The sale of private company shares on the secondary market is becoming increasingly prevalent as the timeline to reach a liquidity event has lengthened over the last decade. In order to proactively manage secondary transactions, the boards, management teams, and investors of these companies need to be aware of the relevant issues, challenges and considerations. Unlike public markets, where information disclosure rules are well established, rights and privileges of existing investors are limited and securities laws are well defined, the world of secondary share sales in private companies is much less understood.
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Reports & Studies

Limited Partners' Perceptions of the Venture Capital Market and the Fundraising Dynamic

The alternative investment market has been subject to severe strain over the last 18 months as the global recession has affected both investment returns and fundraising. Venture capital has not escaped unscathed. More importantly, the venture capital market is seeing the culmination of a number of secular trends that are challenging limited partners’ commitment to this sector. While fund managers in a number of private equity sectors such as middle market buyouts and growth capital are anticipating a rebound in investor interest and fundraising in 2010 with the change in the economic cycle, venture capitalists will likely face a more challenging environment that will impact their capital-raising plans. Fund managers should be prepared for these challenges and may benefit from certain strategies to attract investor capital.
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Reports & Studies

Rebuilding the IPO On‐Ramp

Putting Emerging Companies and the Job Market Back on the Road to Growth, Issued by the IPO Task Force, Presented to The U.S. Department of the Treasury, October 20, 2011 This report recommends specific measures that policymakers can use to increase U.S. job creation and drive overall economic growth by improving access to the public markets for emerging, high-­‐growth companies.

For most of the last century, America's most promising young companies have pursued initial public offerings (IPOs) to access the additional capital they need to hire new employees, develop their products and expand their business globally. often the most significant step in a company's development, IPOs have enabled these innovative, high-­‐growth companies to generate new jobs and revenue for the U.S. economy, while investors of all types have harnessed that growth to build their portfolios and retirement accounts.

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Reports & Studies

Market Structure is Causing the IPO Crisis and More

Market structure is causing the IPO crisis — and more brings current two previously published studies, Why are IPOs in the ICU? and Market structure is causing the IPO crisis. Grant Thornton LLP has studied the decimation of the U.S. capital markets structure, the demise of the IPO market and, with the release of A wake-up call for America, the systemic decline in the number of publicly listed companies. We have provided analysis and insights and offered ideas for a new, opt-in stock market capable of reinvigorating the U.S. IPO market and stimulating job creation.
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Whitepaper

Why Are IPOs in the ICU?

Over the last several years, the IPO market in the United States has practically disappeared. While conventional wisdom may say the U.S. IPO market is going through a cyclical downturn, exacerbated by the recent credit crisis, many are beginning to share a view of a new and much darker reality: The market for underwritten IPOs, given its current structure, is closed to most (80 percent) of the companies that need it.
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Reports & Studies

A Wake-Up Call for America

There is a depression in U.S. stock markets, evidenced by the precipitous decline in the number of publicly listed companies. This is not a global phenomenon; the United States is seriously lagging other industrialized nations in the formation of such “listed” companies. The culprit is changes to market structure that have inhibited economic recovery, impaired the job market and undermined U.S. competitiveness.

The problem is dire, but solutions are attainable. We can fix market structure to support the IPO and listed markets and to drive growth — and Congress and the SEC can lead the way toward adding billions in tax revenue to the U.S. Treasury without costing taxpayers a dime.
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Whitepaper

Industry Ventures: Venture Capital Secondary Funds - The Third Exit Option

Venture Capital Secondary Funds - The Third Exit Option, by Hans Swilden Principal and Founder Industry Ventures LLC Today’s sophisticated and challenging investment landscape creates an advantage for investors that utilize the secondary market to generate liquidity. Secondary funds provide investors with a variety of flexible exit alternatives in addition to those found in the M&A and IPO marketplaces. These options typically benefit both Limited and General Partners. Because each situation is unique, secondary funds work with sellers to create a solution tailored to their liquidity needs. Since Limited or General Partners also have the responsibility to maximize the value of their investments, utilizing the secondary venture market enables Limited and General Partners to improve fund performance and overall returns.
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Article

On IPOs: If You Are Going To File, Make Sure You Price

As you likely know, I am a big believer that the IPO can play a key role in the development of a company’s life. Moreover, I have argued that many in our ecosystem have an unhealthy anxiety regarding the dangers and consequences of being public. Lastly, I have argued that the IPO window is wide open for great companies – something I still believe today. All that said, I have been quite surprised by the recent trend in companies that file and then chose to delay. If you are going to file the S-1, it is imperative that you are prepared to follow through. Standing too long in the middle of the financial equivalent of the river Styx can have severe consequences.
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Important Notice

You are now leaving the SharesPost 100 Fund area of the SharesPost website and proceeding to either a) SharesPost Inc. and its affiliates including SharesPost Financial Corporation, a separate company registered as a broker/dealer with the Securities and Exchange Commission and member of FINRA/SIPC, and SharesPost Investments Management, LLC, a registered investment advisor, or b) to another third party, including UMB Fund Services, Inc. and Foreside Fund Services, LLC, both SharesPost 100 Fund service providers.

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