What is the Market Score?
The Market Score is a proprietary EquityZen metric synthesizing qualitative and quantitative data to evaluate private companies based on factors critical in private market transactions. The Score is a collective score bringing together the following individual scores for each company:
Transactability – Company’s recent willingness to allow transactions.
Liquidity – Likelihood of matching Seller and Buyer interests in a company.
Recent activity – Company’s transaction frequency in the private markets over the last six months.
Popularity – Private market participant interest and engagement in the company over the last 30 days.
The Market Score, the collective metric, and the individual components were designed to bring insight and transparency to investors and shareholders as they assess their interest in buying and/or selling shares of pre-IPO companies.
How should I interpret the Market Score?
The Market Score is a proprietary metric on a given private company that takes into account the company’s transactability, liquidity, recent activity, and popularity. These factors are critical inputs in determining if investors and shareholders will be able to transact. These are also factors exclusively found on the EquityZen platform, leveraging over a decade of market-leading activity in the pre-IPO space. Users can compare two (or more) companies to gain a more nuanced understanding of both the companies themselves and the market around them.
The EquityZen Market Score, like the Private Market Map, is a tool to learn, explore and evaluate private companies based on factors critical in private market transactions.
How is the Market Score calculated?
The Market Score is calculated with four main inputs:
Transactability – Company’s recent willingness to allow transactions.
Liquidity – Likelihood of matching Seller and Buyer interests in a company.
Recent activity – Company’s transaction frequency in the private markets over the last six months.
Popularity – Private market participant interest and engagement in the company over the last 30 days.
Each of those inputs are calculated using proprietary EquityZen data and algorithms to generate a single score, the Market Score, representing the current levels of transactability, liquidity, recent activity, and popularity for each company relative to all other private companies within the pre-IPO company universe. The Market Score and the individual metrics do not guarantee an investment opportunity.
Why do some companies not have a Market Score?
EquityZen provides a Market Score for most companies that meet the required thresholds of being on the EquityZen platform. Companies may not have a Market Score if EquityZen does not have enough data for those companies to calculate a score with a high degree of confidence.