(Corrects headline to show exchange is not in U.S.)
By Nichola Groom
LOS ANGELES, April 1 Seeking to breathe life
into the bleak fund-raising environment for clean technology
companies, a new private exchange wants to make it easier to
invest in promising biofuels, solar or other green start-ups.
Known as GREENDAQ, the new exchange goes live on Wednesday
at www.greendaq.com. It claims to be the world's first
equity and commodities exchange created exclusively for the
green technology sector.
Chief executive and founder Andrew McLean said GREENDAQ
will provide a key benefit to investors who might be wary of
pouring cash into new technologies -- allowing them to trade
the shares of start-ups.
"We are offering them a way to have liquidity in the early
stages in the investment process," McLean said in an interview.
"From an investors' point of view you are getting excellent
global deal flow and an opportunity for liquidity. Otherwise
you invest in a private company and you have no liquidity."
Companies will be vetted before they are listed, McLean
said. He expects to have 5 companies listed in the next two
months and 20 companies or green commodities listed in the
exchange's first 12 months.
The first company listed will be a British maker of
jatropha-based biofuels, Carbon Credited Farming Plc.
For equity offerings, McLean expects the minimum investment
will be about $100,000.
The exchange also plans to list "new classes of
commodities" it calls green oil, green energy and green lumber,
McLean said. Green oil units could go toward raising capital
for a plantation of cellulosic material to produce biodiesel,
The exchange is not open to the general public. Investors
must apply to become members of the exchange and, once
approved, will have access to GREENDAQ's full range of
offerings. The exchange hopes to have 10,000 investment
professionals registered by the end of its first year.
Aruba-based GREENDAQ will generate its own revenue by
charging fees for companies to list and for investors to
(Reporting by Nichola Groom; Editing by Andre Grenon)