Case Study
ThredUp and the Long-Term Stock Exchange: A shared vision for long-term value
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.
James Reinhart, CEO and Co-Founder, ThredUp
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.
Inspiring a new generation — of consumers, businesses, and investors — takes guts. It’s a task steeped in a long-term strategy that focuses on purpose-driven profit. Resale pioneer ThredUp is blazing a new trail in the retail industry, promoting a more sustainable, circular future for fashion.
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:
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.
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.
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
ThredUp has a meaningful, long-term mission to better the world with passionate people to drive its efforts. What it needed was a way to further amplify its message — its position as a long-term value creator — to stakeholders of all types, and that’s where the Long-Term Stock Exchange came in.
Even in a challenging market environment, the benefits of dual listing rapidly became clear. An internal analysis by LTSE shows that ThredUp began to attract the right investors, experiencing 80% greater public investor quality compared to publicly traded peers, according to LTSE's Long-Term Investor ScoreSM methodology.1 On top of that, its investors behaved 70% longer-term in ThredUp compared to their average investment behavior across the entirety of their other portfolio holdings.2 Plus, the investors were more aligned with ThredUp’s approach; 40% of the top 25 sub-fund holders demonstrated investment behavior significantly accretive to long-term investor quality.3
And there was more good news about the improvement in ThredUp's quality of investors: there was a 28.4% decline in the amount of high-risk capital invested in ThredUp.4 Across the board, ThredUp’s long-term focus is being rewarded with patient, quality investment.
Even in a challenging market environment, the benefits of dual listing rapidly became clear. An internal analysis by LTSE shows that ThredUp began to attract the right investors, experiencing 80% greater public investor quality compared to publicly traded peers, according to LTSE's Long-Term Investor ScoreSM methodology.1 On top of that, its investors behaved 70% longer-term in ThredUp compared to their average investment behavior across the entirety of their other portfolio holdings.2 Plus, the investors were more aligned with ThredUp’s approach; 40% of the top 25 sub-fund holders demonstrated investment behavior significantly accretive to long-term investor quality.3
And there was more good news about the improvement in ThredUp's quality of investors: there was a 28.4% decline in the amount of high-risk capital invested in ThredUp.4 Across the board, ThredUp’s long-term focus is being rewarded with patient, quality investment.
80%
greater public investor quality compared to publicly traded peers.5
40%
of the top 25 sub-fund holders demonstrated investment behavior significantly accretive to long-term investor quality.6
28.4%
decline in the amount of high-risk capital invested in ThredUp.7
Finding success one step at a time
Listing on the Long-Term Stock Exchange means actively cultivating a long-term strategy that resonates with stakeholders. Michelle Greene, President Emeritus and former Interim CEO and Board Chair at the Long-Term Stock Exchange, puts it plainly:
"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.
"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.
On the Long-Term Stock Exchange, accountability is focused on your performance against your own long-term goals.
Michelle Greene, President Emeritus, former Interim CEO
and Board Chair, Long-Term Stock Exchange
Benefits of listing on the Long-Term Stock Exchange
The Long-Term Stock Exchange differentiates companies to help them get the credit they deserve from critical long-term stakeholders.
Your company will have one ticker symbol across exchanges – dual listing on the Long-Term Stock Exchange is 100% compatible with incumbent U.S. exchanges.
Listing on the Long-Term Stock Exchange is a straightforward process for
companies already doing the work that comes with long-term leadership.
Listing on the Long-Term Stock Exchange allows qualifying companies to authentically communicate their vision with stakeholders who share a passion for long-term value creation. These companies exemplify leadership and distinguish themselves as trailblazers of a new era, with like-minded investors helping them take the next step forward.
A partnership built on results
There are more than 4,000 companies listed across U.S. stock exchanges, and many of these companies find it challenging to break through and be noticed. That’s why ThredUp’s partnership with the Long-Term Stock Exchange was so important; it helped strengthen the company’s voice as a long-term value creator and distinguish ThredUp’s business approach.
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.
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.
Benefits of listing on the Long-Term Stock Exchange
For additional case studies, resources, and more information about how listing on the Long-Term Stock Exchange can be good for your business, good for shareholders, and good for the investor community, email listings@ltse.com.
Contact Listings Team
Disclaimer
The information contained above is provided for informational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Readers should consult their own tax, legal, accounting or investment advisors.
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.
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.
- Ibid.
- Ibid.
- Ibid.
- Ibid.