Interview with Nasdaq Private Market CEO, Greg Brogger

March 25, 2014

Overview

About Nasdaq Private Market (NPM)

NASDAQ Private Market is the new capital market for leading private companies. Through its broker-dealer network and partners, NASDAQ Private Market connects companies with a global community of investors, and provides an integrated equity solution for managing everything from cap table management to stock plan administration. Whether a company seeks to optimize an eventual IPO or remain private permanently, NASDAQ Private Market provides complete capital market support to meet its needs. For certain eligible investors and shareholders, NASDAQ Private Market is a place to discover and engage with some of the most exciting private companies.

NASDAQ Private Market was formed in March of 2013 as a joint venture between The NASDAQ OMX Group, Inc. and SharesPost, Inc. Securities related services are offered through its affiliate, NPM Securities, a FINRA registered broker-dealer, member of SIPC and SEC-registered alternative trading system.

NPM provides a range of services to private companies. Our Total Equity Solution is an integrated set of services from NASDAQ Private Market, its affiliates and partners that enables any private company to manage its equity program. The solution is designed to integrate key areas of a company equity plan including secondary transactions, disclosure management, cap table management, and stock plan administration. 

Interview Notes

  • Initially NPM will only facilitate secondary transactions but support for primary issuances is on the roadmap
  • Sweet spot today is high-growth companies with plans to go public within the next 24-36 months
  • On alternative secondary market structures: concerned about informational disadvantages & liability issues with secondary transactions that are structured as options, where ownership is not transferred
  • Roughly 20 companies have been approved and onboarded to the platform so far; and NPM has identified 500 or so more that fit their target profile.
  • Mobli is one example of a company using NPM: it recently raised a $60M round at a ~$1B valuation and is using NPM to provide liquidity to existing investors.

Comments

  • Brian Koscak

    Jonathan, you did a great interview with Greg Brogger. Greg provided clear and good insight. I note that in Canada, the TSX recently announced the TSX Private Capital Markets and looks like they are following the NASDAQ Private Market Model. Keep up with this excellent content and thanks for all your hard work. You are very knowledgeable and obviously very prepared for these and other interviews I have watched.

    • Thanks, Brian! Looking forward to see NPM evolves, especially as they move into primary offerings :).

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