SAN FRANCISCO, July 25, 2018 /PRNewswire/ — Equidate, the stock market for private technology companies, has announced a $50 million Series B financing round led by Financial Technology Partners (“FT Partners”), Panorama Point Partners, and Operative Capital. Equidate’s existing investors include Peter Thiel, Tim Draper, and Scott Banister.
“As a global leader in FinTech investment banking, we have executed many hundreds of private deals and have evaluated thousands more. I have rarely seen a business with Equidate’s potential to define the future of private company investment services,” said Steve McLaughlin, founder and CEO of FT Partners. “Equidate’s global technology platform has accelerated the behavioral shifts fueling the growth of the private markets, and we are excited to partner with them through this period of strong growth to create a truly foundational component of this new economy.”
Equidate, founded in 2014, is the leading stock market for private companies. The company’s global electronic trading platform connects individual and institutional investors with sellers like venture capitalists and shareholder employees, as well as some of the largest and most prominent private companies themselves. Equidate believes its run-rate of $1 billion of trade volume this year squarely places the company as both the market leader and the fastest growing player.
Responding to the current trend of growth companies staying private much longer, Equidate sees traditional institutional investors becoming significantly more active in the pre-IPO economy. The pre-IPO market has been dominated by networks of brokers for the last decade, and Equidate’s technology-centric approach is the key to unlocking the market’s true potential.
“Our recent growth has been powered by the entrance of significant global institutional players in our market,” said Samvit Ramadurgam, Founder and co-CEO of Equidate. “Many of these large investors made secondary investments for the first time ever in 2017, and it’s clear to us that this asset class is quickly becoming a dedicated part of their portfolios.”
“By combining data with our sophisticated technology, we’ve been able to operate at a level of scale, efficiency, and intelligence which to date has never before been seen in this industry,” said Sohail Prasad, Founder and co-CEO of Equidate. “This financing represents us entering our next phase of strong growth. We’ve been seeing outsized demand from international players, and our singular focus is now on the broadest global distribution of our platform onto the desks of institutions and into the hands of individuals.”
Equidate is the premier stock market for private, pre-IPO companies. Established in 2014, the company empowers investors and shareholders by enabling access and liquidity in the private market. Equidate is led by Y Combinator alumni and backed by top investors including Peter Thiel, Tim Draper, and Scott Banister. Equidate’s platform allows employees and investors of growing startups to liquidate a portion of their shares, and provides private and institutional investors access to top companies like Spotify, Snapchat, and Square before their IPO.
About FT Partners
FT Partners is the only investment banking firm focused exclusively on the Financial Technology sector. The Firm has been recognized as Dealmaker of the Year and Investment Banking Firm of the Year by the M&A Advisor, and was ranked #1 Most Influential in Institutional Investor’s FinTech Finance list globally. The Firm was founded in 2002 by Steve McLaughlin, CEO and Managing Partner, formerly a senior investment banker in Goldman Sachs & Co.’s Financial Technology Group and Financial Institutions Group in New York and San Francisco. FT Partners also served as advisor to Equidate on the transaction.
About Panorama Point Partners
Founded by Stephen J. George and his partners, Panorama is a private equity firm that targets investments in exceptional private companies, with promising growth characteristics often driven by powerful industry, technology, demographic meta-trends, and changes in market structures. Panorama generally invests in the range of $10-30 million in equity and, as a firm founded by entrepreneurs itself, actively partners with founders and executives to ‘co-build’ portfolio companies. Panorama is backed by some of the world’s top family groups, who have created market leading businesses over generations and select long-term focused institutions. Prior to Founding Panorama, Stephen was the long-term Chief Investment Officer & Co-Managing Partner at a global private investment firm owned by the Founding President of eBay, Inc. which had approximately $5 billion in capital under management, with a strong focus on and record of success in private equity investing.
About Operative Capital
Founded by Kelly Rodriques and Drew Sievers, Operative Capital is an entrepreneur-run, early stage financial technology fund. Operative Capital provides capital, coaching, and mentoring for portfolio companies and founders. Prior to founding Operative, Kelly was the long-term CEO of Pensco (acquired by Opus Bank) and former Totality CEO (sold to Verizon). Drew was the former CEO and co-Founder of mFoundry (acquired for $165 million by FIS), and former CEO of Semaphore Partners. Operative investments have focused on innovation in bank, wealth and payment services.