TEL AVIV (Reuters) - Israel’s PrivatEquity.biz has launched an Internet trading platform that allows current and former employees who hold the securities of private companies to offer their securities for sale.
Employees, former employees, service providers and founders who hold private companies’ securities can offer their securities for sale on the site, which connects them with investors, the company said on Monday.
The site’s business model is based on receiving commissions from both parties only in the event of a transaction. The prerequisites for offering private companies’ securities for sale are that the securities are worth at least $10,000 and are held by the owner for at least one year.
“Millions of current and former employees of private high-tech companies all over the world hold the securities of private high-tech growth companies in various growth stages,” said Sigalit Cohen, PrivatEquity’s chief executive. “At the same time, investors all over the world hold vast private capital and seek attractive investment offers in private high-tech companies.”
PrivatEquity was launched this week in Israel and plans to expand to other high-tech centers in Europe and Asia.
In addition to the securities arena for employees, PrivatEquity.biz’s site offers two more trading platforms. One will allow private growth companies to raise limited funding from investors who will provide a minimum of $10,000 each.
The other will allow angel investors to lead investment rounds in start-up companies and will be open to investors interested in small investments starting at $2,500.
Last week, Nasdaq OMX said it planned to create a market for trading shares of unlisted companies in a joint venture with trading platform SharesPost Inc, tapping into increasing investor interest in private firms.
Reporting by Tova Cohen