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Nasdaq Private Market Survey Finds Liquidity and Retaining Talent Most Important Priorities to Start-Up Companies

SAN FRANCISCO and AUSTIN, Texas, March 19, 2015 (GLOBE NEWSWIRE) -- The Nasdaq Private Market, LLC, a leading provider of equity management and liquidity solutions for growing private companies, today released the results of a survey of founders, executives and employees from start-up companies attending the South by Southwest (SXSW) Interactive Festival in Austin, Texas. Nearly half of the start-up company respondents feel liquidity is important to their executives and employees, and 50 percent cite attracting, retaining and capitalizing on talent as their top priority for the upcoming year.

When it comes to liquidity needs, companies are searching for answers beyond the public markets since over three quarters of respondents were unsure if an initial public offering is a possibility in their company's future. Building a great company, salary and equity were the top three answers given when asked how companies plan to attract and retain talent.

"It is apparent that there is not a 'one size fits all' option for private companies, especially in today's competitive hiring market," said Jeff Thomas, Vice President at Nasdaq Private Market. "The findings from this study underscore the need for a range of liquidity and equity management solutions for private company entrepreneurs as they look to use equity to attract and retain talent."

Additional findings from the survey include:

  • Sources of Capital – Responses indicate that private companies still prefer funding from institutions (private equity and/or venture capital) at 63 percent vs. individuals via crowdfunding and angel investors at 33 percent.
  • Stock Options – Over half of the private companies surveyed offer stock options to their employees but only 21 percent allow their employees to sell their shares.
  • Funds Raised Nearly half (49 percent) of respondents' companies have raised over $2 million, while 22 percent have raised $20 million or more.

To view the full survey results, please visit: spr.ly/NPMSXSWSurvey

Survey Methodology

The Nasdaq Private Market Survey was conducted from March 13-15, 2015 at the SXSW Interactive Festival in Austin, Texas. Over 100 event attendees were polled for this survey, including executives and employees of private companies. 53 percent of respondents are company founders or hold C-Suite level positions. 63 percent of respondents work at companies founded less than six years ago.

About Nasdaq Private Market

Nasdaq Private Market is the premier equity services provider to private companies. Our end-to-end solution enables private companies to digitize, integrate, and control all of their equity-related functions, including cap table management, shareholder liquidity, investor relations, and capital raising. Whether a company seeks to optimize an eventual IPO or remain private permanently, Nasdaq Private Market provides comprehensive 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. Securities-related services are offered through NPM Securities, LLC, a registered broker-dealer and alternative trading system, member FINRA/SIPC. To learn more, visit www.npm.com.

CONTACT: Media Contacts Ashleigh Bilodeaux +1 415 243-3154 ashleigh.bilodeaux@nasdaq.com Will Briganti +1 646 441-5012 william.briganti@nasdaq.com

Source:NASDAQ Private Market, LLC