New Pre-IPO Financing Model, With NYSE Rather Than Around NYSE (NYX)

InsideVenture was there for the open at the NYSE Euronext (NYSE: NYX) today, and the company is trying to open up wider markets for venture-backed and late-stage companies to come public.  These models look more like a quasi-public model rather than full initial public offerings being sold to the public on an exchange.

The group is unveiling changes to the IPO process to bring a greater number of growth companies and increase opportunities for long-term small cap investors.  The company notes that this “facilitates liquidity, late-stage financing, and the critical aftermarket support needed for an orderly transition of value from private to public investors and economic growth.”

InsideVenture also claims the backing of T. Rowe Price, Wasatch Advisors, Silicon Valley Bank, NYSE, NVCA, NEA, Domain, Venrock, DCM, Clarus, Frazier, Versant, Oak Investment, Aisling, and others.

For investors, this new launch gives access to venture capital’s best late stage private companies, with secure allocation and set pricing, allows investors to co-invest with similar investors, and gives added research into private companies.  For companies, this new launch gives access to more than 200 institutional and strategic investors, which get to go public, and to receive after-market support while accelerating the fund-raising process and improve economics.

The companies targeted here are late-stage and pre-IPO private companies (as well as small and mid-cap public companies) in technology, healthcare, and energy.  The target is also noted as those seeking a last round of financing in the $20 to $200 million range before an IPO or before a strategic sale and in a 6 to 18 month time frame.

Jon C. Ogg
June 1, 2009