Nasdaq launches new platform for unlisted companies

Published on 7/20/2021 10:31 AM

The stock market operator Nasdaq announced on Tuesday that it would split its platform dedicated to unlisted companies from its main activity, to make it the basis of a new company in partnership with Citi, Goldman Sachs, Morgan and SVB Financial Group.

With the contribution of these banks, Nasdaq Private Market wishes to strengthen its offer to companies wishing to sell shares to investors without, however, yet entering a traditional stock exchange.

Start-ups generally wait longer than before to enter Wall Street thanks to the financial support of institutional investors wishing to bet on innovative companies.

But their employees also often want to be able to sell the shares received as compensation.

Platforms for unlisted companies have multiplied.

The strengthening of Nasdaq Private Market “will help meet unmet market demand and provide a more transparent and efficient offering to private companies, their employees and investors seeking access to private assets,” says a statement.

The new company will rely on the platform already developed by Nasdaq since 2014 and on the group’s experience in the markets, as well as on the network of partner banks, both start-ups for which they arrange finances and institutional investors. .

“Innovative companies stay private longer and need to be able to offer their employees a safe and easy way to generate cash as they grow their businesses,” said Greg Becker, Managing Director of SVB Financial Group in a statement. , the parent company of Silicon Valley Bank.

Financial terms of the transaction were not disclosed.


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