ThredUp and the Long-Term Stock Exchange: A shared vision for long-term value
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It is time for decisive action. Companies have punted too many promises to their stakeholders on the environment, social causes, and who they are building for. By dual-listing on the Long-Term Stock Exchange, we are codifying the critical relationship between ThredUp and our long-term stakeholders and ensuring our success is their success.
Integrity in action wasn’t enough for ThredUp to have its voice heard; it needed a partner who could amplify its work and help it connect with like-minded stakeholders.
ThredUp’s mission? To inspire the world to think secondhand first. The fashion world, much like investing, is held captive by the short term. It’s a dynamic that ThredUp is hoping to fix, outlined in its long-term standards:
“ The environment is one of our most important stakeholders and combating the harmful effects of disposable fashion is one of our greatest goals. ”
ThredUp was proactively taking courageous steps to advance critical long-term initiatives but there was still work to be done. This led to the company's decision to list on the Long-Term Stock Exchange, an SEC-approved stock exchange founded to help visionary companies like ThredUp get the credit they deserve.
ThredUp's decision to list on LTSE signals commitment to sustainable growth
At the time of listing, ThredUp CEO and Co-Founder James Reinhart, reflected on the need for companies to pair integrity with initiative:
“It is time for decisive action. Companies have punted too many promises to their stakeholders on the environment, social causes, and who they are building for. By dual-listing on the Long-Term Stock Exchange, we are codifying the critical relationship between ThredUp and our long-term stakeholders and ensuring our success is their success.”
The focus on short-term gains has long dominated the investing world, but a cultural shift is underway thanks to companies like ThredUp and its partnership with the Long-Term Stock Exchange.
Standing out from the crowd
Even in a challenging market environment, the benefits of listing on the exchange rapidly became clear. An internal analysis by LTSE shows that ThredUp began to attract the right investors, experiencing 132% greater public investor quality compared to publicly traded peers, according to LTSE's Long-Term Investor Score℠ methodology.1 On top of that, ThredUp saw 101% greater investor quality in comparison to the investment behavior across the entirety of these investors' portfolio holdings.2 Plus, the investors were more aligned with ThredUp’s approach; 56% of the top 25 sub-fund holders demonstrated investment behavior significantly accretive to long-term investor quality.3
Finding success one step at a time
”On the Long-Term Stock Exchange, accountability is focused on your performance against your own long-term goals.”
In the spirit of that quote and as required by the rules of the Long-Term Stock Exchange, ThredUp codified its own practices to demonstrate accountability and a clear focus on the future. These commitments provide a comprehensive outlook on how the company intends to deliver on its promises and the work it is already doing to actualize those promises. Current and prospective investors can see the importance that ThredUp places on its long-term approach and how well that approach aligns with their investing strategy.
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On the Long-Term Stock Exchange, accountability is focused on your performance against your own long-term goals.
ThredUp measures LTSE's impact by increasing share of new values-aligned consumers
LTSE methodology drives best-in-class investor quality
132%
101%
56%
- We focus exclusively on actively managed investors when analyzing investor quality. We specifically exclude passive investors since their investment decisions are tied to a benchmark index (i.e. Russell or S&P Indices). We also exclude all insider ownership. This allows for a true apples-to-apples data driven analysis between ThredUp and its public comp group.
- Investor quality is measured using the proprietary LTSE Long-Term Score℠. We track the long-term behavior of every 13F eligible institutional investor at the sub-fund level.
Benefits of listing on the Long-Term Stock Exchange
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A long-term partnership built on results
The benefits were quickly realized, as illustrated by ThredUp’s investor base, which improved in quality, held less high-risk capital, and demonstrated long-term investment behavior. ThredUp had broken through the short-term noise.
Being the catalyst for a generational shift in consumerism is a daunting task. ThredUp’s mission will take dedication and the right partners — partners like the Long-Term Stock Exchange.
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Disclaimer
Many of the services outlined in this document are provided by LTSE Services, Inc. LTSE Services and its affiliates, including the Long-Term Stock Exchange, Inc., which is a registered national securities exchange under the provisions of the Securities Exchange Act, do not provide tax, legal, accounting or investment banking or investment advisory services or advice.
Companies are not required to adopt or purchase any tools or services from LTSE Services in order to apply to list on the Long-Term Stock Exchange. Companies can customize their long-term policies; however, only the Exchange’s independent regulatory staff can determine whether proposed policies meet the principles-based requirements for listing under Exchange rules. Exchange rules differentiate between the products and services that it can offer to prospective listed companies and those that are available to companies currently or newly listed on the Exchange.
Neither LTSE nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding LTSE-listed companies are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results.
© 2024 LTSE Services, Inc.
References
- The statistics presented in this case study were calculated and provided solely by the Long-Term Stock Exchange and are based on Long-Term Stock Exchange tracking data. ThredUp Inc. did not provide or verify these statistics and is not responsible for their accuracy.
- Based on Long-Term Stock Exchange tracking data.
- Ibid.