sohailprasad

The goal of the campaign is to drive awareness among individual investors and employees, and we're doing so by contrasting the opportunities of today with opportunities in successful companies of the past. We've gotten a great response so far, but thanks for your candid feedback.

Each person is limited to one certificate. The certificate is redeemable either for securities (i.e. a share of Facebook at its closing price as of July 13, 2016) through a broker-dealer for those who setup an account, or else for merchandise. It's structured like this specifically to ensure that we're compliant with relevant regulation.

Yes, it is legal. As per the event page: The promotion is not an offer to buy or sell securities, nor are the certificates sold in the promotion securities.

Once your purchase is confirmed, we'll send you information via email on how to fulfill your purchase and your certificate. The certificate is redeemable either for securities through a broker-dealer for those who setup an account, or else for merchandise.

All of the proceeds from our Early Is Everything Pre-IPO Pricing Event are being donated to MissionBit, a Bay Area nonprofit that sponsors underprivileged high school students in the San Francisco Bay Area to learn computer development skills.

Hi there, co-founder of Equidate here, happy to answer any questions you have.

We're well aware of Sandhill Exchange — they were akin to a prediction market — we're a market where employees and investors who own shares are able to get liquidity, and accredited investors are able to invest.

We've worked with our primary outside counsel, Lowenstein Sandler (an internationally-prominent securities law firm), to ensure our compliance with all regulation. As the article mentions, we've discussed Equidate with regulators since 2014, and this past January FINRA approved our purchase of a broker-dealer.

Finally, we've gone above and beyond to make sure our customers are protected. We have an exclusive underwriting agreement and insurance policy with Munich Re, the world's largest reinsurance company, to protect our investors from fraud.

It's very rare for a startup our size to have a full-time Chief Legal Officer & Chief Compliance Officer, and it's a testament to our efforts to get this right.

Given the nature of secondary transactions, many people don't want to talk publicly about their experience. That said, if you're interested in working with us, I can make introductions to a couple shareholders or investors that have worked with us in the past (and have agreed to share their story).

I'm also always happy to chat and answer any of your questions. Feel free to email me: sohail at equidateinc dot com

"It exists for one reason only - shareholders of pre-IPO companies don't want to wait years and hence are willing to trade their shares for immediate cash."

Yes, secondary markets are designed to provide liquidity to shareholders in pre-IPO companies. At the same time, most investors who want access to pre-IPO stocks have no ability to participate. Value creation has increasingly shifted from the public markets toward private markets. Consider eBay, which was valued at $32 million in 1996 and went public with a $1.9 billion valuation in 1998 (a 60x gain), compared to Twitter which went public in 2013 at a $24 billion valuation, a 657x gain from their $35 million valuation in 2007.

Why should those who are extremely wealthy and well connected be the only investors with access to such investments?

I'm the CEO of Equidate, one of the companies profiled in this article.

The article raises excellent points on the pitfalls of trading pre-IPO stock on secondary markets. The opportunity is risky to be sure, only for educated investors as ready and able to lose money as to make money. Information is limited and protections are only as good as the integrity of the participants. That puts a premium on honestly, transparency, and strict adherence to securities regulations.

The American economy is built on liquidity and rapid turn-around of investments: new company founders, investors, even venture capitalists and private equity fund managers got where they are because an early exit allowed them to cash in early gains in order to re-invest in the market. This used to take a few years, but now, due to market changes, they will no longer see a penny until their company goes public after an average 7.5-year wait. More likely, their company will fail despite years of hard work and success, leaving them nothing. Secondary markets are a relief valve for these founders, early angel investors, and current and former employees.

When shares cannot be traded, even the most ambitious and brilliant entrepreneurs are locked in for the better part of a decade, waiting for something to happen. If they have liquidity they can start something new — perhaps a cure to disease, a new media company, or one that launches rocket ships. This liquidity is how many of today’s great companies got their start.

Collectively, we owe it to founders and investors, and the economy, to create reliable secondary markets. That’s why Equidate was founded.