5 ms·

Can someone explain like I'm 5 what this is and what problem it solves? I googled for a few minutes and still don't understand anything.

smabie 6y ago
It provides liquidity for shareholders of illiquid, private companies. It solves the problem of connecting buyers and sellers of shares in these companies. It will also function as a better pricing function for private companies instead of using the valuation of the company at the last funding round.
- deleted 6y ago
  [deleted]
- TeMPOraL 6y ago
  > It provides liquidity for shareholders of illiquid, private companies. Could you please ELI2 that? Thanks!
  - deleted 6y ago
    [deleted]
  - mvc 6y ago
    Gives a chance for people who own stock in companies that don't trade on the stock market, to sell that stock.
    - temac 6y ago
      At what point will there be a third layer of ultra private stock market?
conanbatt 6y ago
Employees can sell stock from private companies.
- sateesh 6y ago
  Without board approval of their respective companies ?
  - acjohnson55 6y ago
    I'm pretty sure the idea is that the company would opt into being listed on CartaX so that their employees can get liquidity, but also so that the company can fundraise from a liquid market.
Terr_ 6y ago
Private craigslist for things you can't sell on ebay, maybe?
kqvamxurcagg 6y ago
I actually don't even get this. Surely this problem is solved with Liquid Stock or a voluntary buyout (if allowed) at the next funding round? Most institutional investors don't want anyone cashing out until a liquidity event like a buyout or an IPO. I would imagine the revenues available for this private transfer market are very small.
- caseysoftware 6y ago
  The revenues are very small for the company but could be huge for the employee. If you joined [random company] early at got 1000 shares that are worth 10x much after a round or two of funding, it may have turned into house downpayment-sized dollars in the meantime. Further, most employees don't know if their company is raising until it's a done deal. Therefore, they can't predict, plan, or act when the time is right. Regular, predictable liquidity windows is compelling and gives employees more choices, even if they never take them.

smabie 6y ago

It provides liquidity for shareholders of illiquid, private companies. It solves the problem of connecting buyers and sellers of shares in these companies. It will also function as a better pricing function for private companies instead of using the valuation of the company at the last funding round.

deleted 6y ago
[deleted]
TeMPOraL 6y ago
> It provides liquidity for shareholders of illiquid, private companies. Could you please ELI2 that? Thanks!
- deleted 6y ago
  [deleted]
- mvc 6y ago
  Gives a chance for people who own stock in companies that don't trade on the stock market, to sell that stock.
  - temac 6y ago
    At what point will there be a third layer of ultra private stock market?

conanbatt 6y ago

Employees can sell stock from private companies.

sateesh 6y ago
Without board approval of their respective companies ?
- acjohnson55 6y ago
  I'm pretty sure the idea is that the company would opt into being listed on CartaX so that their employees can get liquidity, but also so that the company can fundraise from a liquid market.

Terr_ 6y ago

Private craigslist for things you can't sell on ebay, maybe?

kqvamxurcagg 6y ago

I actually don't even get this. Surely this problem is solved with Liquid Stock or a voluntary buyout (if allowed) at the next funding round? Most institutional investors don't want anyone cashing out until a liquidity event like a buyout or an IPO. I would imagine the revenues available for this private transfer market are very small.

caseysoftware 6y ago
The revenues are very small for the company but could be huge for the employee. If you joined [random company] early at got 1000 shares that are worth 10x much after a round or two of funding, it may have turned into house downpayment-sized dollars in the meantime. Further, most employees don't know if their company is raising until it's a done deal. Therefore, they can't predict, plan, or act when the time is right. Regular, predictable liquidity windows is compelling and gives employees more choices, even if they never take them.