Nasdaq Inc. is collaborating with top banks that include Morgan Stanley and Goldman Sachs in a market spin out of private companies’ shares, according to WSJ.

  • The move is expected to boost transactions in the Nasdaq Private Market, the trading platform of shares of companies, which have not yet had an IPO.
  • Nasdaq Private Market will be a distinct stand-alone company receiving investments from a group of banks, which will also include Citigroup and SVB Financial Group.
  • Nasdaq Private Market does not allow individual investors with a net worth of less than $1 million to transact. Some of its clients are Coinbase Inc. and Asana Inc.
  • Pre-IPO share trading has been on the rise, with start-ups waiting longer to list, employees drive to cash out shares, and investors looking to make a kill in lucrative tech start-ups.
  • Competing trading platforms that have emerged include Carta, EquityZen Inc., Forge Global, and Carta. 

Nasdaq Private Market handled $4.6 billion in the first half of 2021 from a record of 57 private companies’ secondary transactions. The market was created in 2013.

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