The Nasdaq OMX Group (Nasdaq:NDAQ) and SharesPost, Inc. announced today a joint venture that will establish the preeminent marketplace for private growth companies.
The venture combines NASDAQ OMX's market and operating expertise as well as resources with SharesPost's leading web-based platform.
The NASDAQ Private Market (NPM) will provide improved access to liquidity for early investors, founders and employees while enabling the efficient buying and selling of private company shares. While NASDAQ will retain a majority stake in the venture, specific terms of the joint venture were not disclosed.
"The support of entrepreneurs is a fundamental element of our DNA at NASDAQ OMX," said Bruce Aust, EVP of NASDAQ OMX. "The NASDAQ Private Market will provide private companies additional flexibility as they plan for their future and, at the same time, bring the investment community unique opportunities. By combining our resources, expertise and reach with SharesPost's established technology, we will bring scale, efficiency and transparency to this marketplace."
An increasing number of companies are choosing to remain private longer, which requires an efficient means to access liquidity for employees and investors. NPM will offer a complete, end-to-end solution that will enable a private company to control the marketplace for its shares. Transactions on NPM will meet NASDAQ OMX's industry-leading standards for security, compliance and client support.
"NASDAQ OMX has a long history of pioneering capital markets solutions for companies and creating more efficient markets," said SharesPost Founder, Greg Brogger. "Its dedication to that mission, and SharesPost's best-in-class trading platform, will create a new kind of private market and will help NPM solve the critical challenges facing today's private companies."
NPM will launch later this year pending regulatory approvals, with Greg Brogger as President, and will be based in San Francisco. SharesPost's broker dealer and RIA businesses will continue to operate separately from the joint venture.