March 29, 2019

Venture Exchanges: Providing Liquidity to Small Cap Companies?

The creation of venture exchanges has sometimes been proposed as a way of facilitating capital formation for smaller, growth-stage companies.  The concept usually entails:

  • A public trading venue (open to individual retail investors and functioning as an exchange, with some transparency in pricing);
  • A commitment to smaller, growth-stage companies;
  • The ability for existing investors to sell their shares to new investors on the exchange; and
  • The ability of the issuer to raise capital in connection a decision to list the shares for secondary trading.
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