Silicon Valley will have its own exchange

Silicon Valley may have its own exchange, especially for its many startups, writes WSJ. A new marketplace called the Long-Term Stock Exchange (LTSE) promises to encourage long-term investment, the idea being to protect companies from the pressure of investors who are looking for rapid explosive growth. Large funds from the Valley have invested in the project, including the fund of PayPal co-founder and hedge fund manager Peter Thiel.

Details. On Friday, LTSE representatives submitted a second application for registration of the exchange to the US Securities and Exchange Commission (SEC). The regulator must make a decision within 240 days.

The first time, the founders of LTSE were rejected because they proposed to write in the rules of the new exchange the principle that shareholders of companies that will list on the LTSE would eventually receive more voting rights in them (the longer the investor remains in the capital, the more votes it has). The SEC considered that this provision would violate the rights of other investors. It was not included in the new application. But the representative of LTSE specified that the company has not abandoned this idea and is going to return to it later.

Investors. 30% of the parent company LTSE is owned by startup guru Eric Rees, another 11% by Peter Thiel's venture fund, 7% by Twitter co-founder Evan Williams, and engineer and investor Marc Andriessen, one of the creators of the first browser for Windows, is also among the investors. .

Anton Baev