SharesPost Benefits for Companies
SharesPost offers companies two major benefits. First, we enable companies to customize and control the secondary transactions for their shares. Second, we let them efficiently raise capital from our more than 24,000 registered members who manage more than $125+ billion in assets.
Controlled, Customized Secondary Market
SharesPost enables companies that join its community to create controlled, customized liquidity for their shares and in a way that generally eliminates the issues sometimes associated with secondary sales for private companies.
Participating companies gain access to a dashboard that enables them to set parameters around the activity that occurs on their bulletin board. These controls empower a company to decide who can buy their shares, who can sell, what percentage of their holdings and at what price. They can also curate the information and content on their bulletin board to ensure it is appropriate and accurate.
These controls also present solutions to some of the issues presented by secondary transactions. Problems such as:
- option pricing complications
- exceeding 500 shareholders
- employees selling large percentages of their ownership
- undesired shareholders becoming purchasers
- secondary sellers “competing” with the company during a private placement or IPO
Companies can decide to set the parameters at their most restrictive settings in order to narrow the network of prospective buyers and sellers or they can choose to set the parameters at their most permissive settings—even making Rule 144A-type information available—to create a vibrant secondary market for their shares.
The Result: as much (or as little) liquidity as you want in a controlled manner customized to fit your corporate objectives. Contact Us to learn more.
Private Placements
Companies that join the SharesPost community significantly enhance their ability to raise new capital. How? SharesPost connects companies and their financial advisors with our thousands of qualified buyers of equity in late stage private companies. Your financial advisor sorts through our member database of qualified investors to select the ideal distribution list of ideal prospective investors. Our database is sortable by our members’:
- specific sector and company focus
- accreditation status (e.g., QIB, accredited, etc.)
- type of investor (e.g., mutual fund, hedge fund, etc.)
- size of fund
- desired size of investment
- average holding period for investments
Your financial advisor then distributes the PPM to our members over our platform, handling all follow up directly.
Qualified SharesPost investors may also independently initiate a request to invest in your private placement after coming across it on your bulletin board or on our Private Placement bulleting board where we list all current private placements for companies in the SharesPost community. If the member meets the criteria you define for a prospective investor, he is given a link to contact the company’s financial advisor directly.
Finally, financial advisors representing our companies can make use of our transactional platform which includes both secure handling of NDAs and diligence documents and turnkey management of electronically signed offering agreements and escrow services.
The Result: relatively easy access to an untapped pool of attractive capital on a rolling basis. Contact Us to learn more.