Thoughts on the Nasdaq-SharesPost New Private Exchange Announcement
As you may have noticed, Nasdaq is creating a new private company market for “accredited” investors with Sharespost. This will bring a huge amount of attention into our space, and open many doors to investors that previously shunned private equity. This deal seems to be limited to larger companies, not the startups and small firms we deal with, and more likely companies with valuations over $100 million. This deal also creates officially a 2 tiered market in the US, one for the rich, and one for the others.
Although this seems to be a move in the right direction, it may actually be a move in the wrong direction.
Based upon our current understanding this market will not fund companies, and will not help in capital formation. It will allow for early investors to sell out pre IPO, so that they can in theory use that capital to fund another new company, which is a great thing, but to us, it just seems like another layer for the rich to get richer.
Think about the process: a wealthy accredited, knowledgeable investor invests into a startup. After 2 or 3 years the startup is doing pretty well, but not enough for an IPO, so this new private exchange will allow him or her to sell out at a great profit, (as well they should for taking on the risk). But they sell to another wealthy, knowledgeable investor (with much less risk as the company has already proven themselves) with the hopes that within a couple of years they may be able to sell out their position at a huge profit to the public market, which is now defined, with this Nasdaq SharesPost venture, as the poor and unknowledgeable market. For some reason that just doesn’t seem right to us. Have the public markets really become a dumping ground for companies that no “wealthy or knowledgeable” investors want? What does this say about the public markets? How does this help get money to the new generation of Googles and Microsofts? What is the greater good?
The time is now for TreveriMarket to expand, to get the word out to investors and companies around the world – and we need all hands on deck to get it done.
Together we have built a solid team throughout the US, Europe and the UK, we have built a solid platform that attracts companies and investors throughout the globe. With over 100 companies on board representing over $200 million in investor opportunities, bringing new technologies, new solutions and over 3,000 new jobs into the marketplace, (if all fully funded) as well as almost 5,000 followers, TreveriMarket has made its business case clear. The Market has broken, TreveriMarket is the solution, commoditizing the process, adding global distribution, diligence and transparency, the door to the once secret back room negotiations to the select few is being blown wide open. TreveriMarket fills a desperately needed void for the small to mid-size companies that have been left out in the cold, shunned by the big firms as it not “cost effective” to try to help new innovative firms until they have reached he status of Facebook or Google. TreveriMarket is creating jobs not just for its clients, but also on its own, with over 30 team members and growing weekly.
Now that we have proven the model, it’s time to ratchet it up a notch or three. TreveriMarket is moving rapidly towards finalizing broker dealer partners in order to fully serve its clients, and evolve from what began as a matchmaking investment club to a fully scalable platform, offering end to end services. We are planning great new changes to our platform making it even easier to search, do diligence, find a partner or a service provider, and we are planning live events in cities around the world, bringing together our clients and our members and partners to help fund and grow these companies.
Too many believe that entrepreneurship is nothing more than a game show or that you can start a company over a weekend. Being an entrepreneur means hard work, complete dedication, knowledge of the competitive landscape, lots of luck and help from people who have done it before – anything but a game – and we are here to provide that help.
TreveriMarket needs your help to go the next step. We need funds to grow too! We need more committed team members that can help spread the word. Team members work on a consultancy basis and may be paid for specific services performed such as business plan writing, diligence, financial modeling, video presentations, grant proposals, helping to list clients on the platform, and helping to secure funding partners, even real estate agents with incubator space, anything that is directly connected to the process of launching or growing a start-up, or small to mid-size company.
TreveriMarket needs funds to expand its marketing efforts, increase its back office functionality, and continue to develop the platform allowing us to grow and help even more companies and create even more jobs. Please contact us if you have interest in learning more.
From the onset of the recent financial crisis, innovative young companies have struggled to achieve their ambitions. At the same time, the plight of even the most venerable financial institutions has eroded trust in markets and caused a breakdown in traditional models of finance and banking. Facing slow growth (or worse), major economic powers are poised now to embrace regulatory reform to improve entrepreneurs’ access to capital and credit. At the same time, emerging technologies enable disruptive new entrants to the arena of finance.
• A network of investors.
• A network of innovators.
• Template-driven business processes.
• A network of skilled advisors and consultants to walk you through every step.
• Standardized data, audited and accessible, to connect companies with capital.
TreveriMarket = cost effective access to capital + transparency for investors
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