PrivatEquity.biz, an internet trading platform which allows current and former employees who hold the securities of high-tech companies which were not issued yet to offer the private securities they own for sale, is now open for business.
PrivatEquity.biz's site, which connects private investors with current and former employees who hold the securities of private high-tech companies, was launched in Israel this week and is now open for registration to employees around the world.
Employees, former employees, service providers and founders who hold private high-tech companies' securities, can now offer their private securities for sale. The meaning for securities' holders, big and small, is that the "exit" is transformed from a one-time event to a continuous process, whose timing may be controlled and which allows the employee to conduct educated risk-management and to reduce the risks all the way to a successful exit. The private holders of the securities of private high-tech growth companies and companies in other fields can receive the money before the exit and the distribution of dividends.
The site's business model is based on receiving commissions from both parties only in the event of an actual transaction. The prerequisites for offering private high-tech companies' securities for sale are that the securities are worth at least USD10,000 and are held by the owner for at least one year. A private high-tech company's employee who will offer his or her securities for sale will state the requested price. The criteria for accepting an investor's offer are the amount of money offered and the time in which the offer was submitted. The winning bid will be the highest one. In the event that a number of offers of the same price were submitted, the investor who submitted the earliest offer will have priority. PrivatEquity will forward only the highest bid to the securities' seller, subject to the full amount being transferred by the bidder to a trustee.
"PrivatEquity is an innovative technological platform, which is the next big thing in technology-based financial services (FinTech) and a game changer in the private stocks investments field. Millions of current and former employees of private high-tech companies all over the world hold the securities of private high-tech growth companies in various growth stages. At the same time, investors all over the world hold vast private capital and seek attractive investment offers in private high-tech companies. We allow current and former employees of high-tech companies to reach these sources of funding," says Sigalit Cohen, PrivatEquity's entrepreneur and CEO.
"PrivatEquity's arena allows millions of investors all over the world to establish their own investment portfolio in private high-tech growth companies. The launching of PrivatEquity is of great significance to high-tech companies' employees, to entrepreneurs, private investors, angels and private companies' securities holders. The platform offers a network where private people establish private companies which can grow and develop products in a smart way utilising the capital which they raise."
The founders plan to expand their activity to other countries in Europe's and Asia's high-tech centres in order to form international co-operations and investment opportunities for investors all over the world.
PrivatEquity consists of three trading arenas. In addition to the securities arena for employees, PrivatEquity.biz's site offers two more trading platforms: The Growth Companies Private Issuing Arena and the Angel Investors Arena.
The Growth Companies Private Issuing Arena will allow private growth companies to raise limited funding from investors (up to 35 investors per year for a private company) who will provide the company with minimal investments, starting at USD10,000. This way, growth companies may conduct a quick private issuing in volumes of hundreds of thousands of dollars and more every year. The arena is designed for private companies post the first funding round, ones that have a "price tag" attesting to their financial worth. PrivatEquity allows private investors to buy securities in private high-tech growth companies, an opportunity open until now almost solely to investments by venture capital funds, strategic organisations or angel investors. The arena offers a new and promising opportunity for the limited funds investor to fulfil a dream and invest directly in the technology companies in which he or she believes.
The Angel Investors Arena will allow angel investors to lead investment rounds in start-up companies by addressing PrivatEquity's investors, for a sum that will not exceed the angel's investment. This arena will also be open to investors interested in relatively small investments, starting with USD2,500. The arena will allow angels to receive investments for technological companies in their early days. Thus, even limited funds investors will be able to participate in a "seed" investment in a start-up company with the professional guidance of the angel investor. As a result, members of the public gain a new financial investment opportunity, which allows them to become a part of the exit and investment in start-up companies' dream. Each investor in the angel investors’ arena may create a varied investments portfolio by investing in a number of companies, under the guidance of an angel investor or a number of angel investors.
