May 19 (Reuters) - Polymarket on Tuesday launched

prediction markets tied to the performance of private companies

through an agreement with Nasdaq Private Market, marking a first

for the rapidly growing sector, it said.

Here are some details:

* Prediction markets allow users to trade on the outcome of

future events, with prices reflecting the perceived probability

of those outcomes.

* Polymarket said the new events could include private

company milestones such as valuation, IPO timings and secondary

market activity.

* Prediction markets have grown popular as users

increasingly trade on the outcomes of events ranging from

elections to cryptocurrencies.

* Polymarket's new offering also creates an additional

price discovery tool for institutional investors, the company

said.

* It added that the Nasdaq Private Market will serve as the

resolution data provider for private company markets on

Polymarket.

* The launch comes as companies stay private for longer.

Several startups have reached valuations comparable to companies

in the S&P 500, drawing growing investor interest in private

markets.

* Polymarket said nearly 1,600 unicorns globally, or

startups valued at more than $1 billion, now account for over $5

trillion in cumulative value.

(Reporting by Manya Saini in Bengaluru; Editing by Devika

Syamnath)