The Democratization of the Private Market

“If the private market can grow from an exclusive club headquartered in the heart of Silicon Valley to an opportunity for interested investors worldwide, it should benefit everyone and positively impact the global economy.”

– Carine Schneider, President, AST Private Company Solutions

Overview

Buying and selling stock in private companies has traditionally been quite difficult. But with huge names like Facebook, Uber, and Robinhood all having begun as private companies, investors are eager to have access to other potential world shakers following the same path.
So, how is the private market changing to meet this interest? New technologies like the immutable audit trails, digital securities, and other decentralized financial solutions are democratizing this previously concealed market.

“Having worked in Silicon Valley my entire career, it was clear that the early days of the private market are behind us and that things are rapidly changing,” commented Schneider, clearly passionate about the subject. More and more companies are being created to service and support the private market ecosystem and to create structure where traditionally there has been very little.”

– Carine Schneider, President, AST Private Company Solutions

Who is this book for?

This book is for investors, innovators, and anyone who is interested in learning more about the future of private market investment.

What will you learn?

Whether you are an experienced investor and business owner or you are curious about how this near wide-open space will be regulated, The Democratization of the Private Market will walk you through the opportunities and challenges of private market investing, and how to get involved in this early stage.

“In order to understand private companies, we spend a lot of time analyzing them. Private companies are opaque (i.e., don’t offer a lot of information, have very little liquidity) and so it’s really night and day to investing in the public market. As companies stay private longer, there really must be a solution other than the public market to access liquidity.”

– Greg Becker, CEO of Silicon Valley Bank (SVB)

Key facts

• • Since 2008, private investments have outperformed other asset classes and have experienced less volatility. (McKinsey 2021 Private Markets Annual Review)

• • Institutions with larger shares of capital invested in private equity and venture capital earned higher returns in 2020. (Cambridge Associates)

• • Significant appreciation and wealth creation in a private company can come before the IPO exit. 31% of IPOs actually fall on their first day of trading compared to their offer price, and nearly 50% of IPOs fall on their second day of trading. (Nasdaq)

The takeaway

With the right considerations and regulations, people around the world can support and participate in a vibrant private market that will have a positive, lasting impact.

Read The Democratization of the Private Market to see how you can get involved.