The partnership capitalises on the synergy between Inveniam’s private market data functions and Rialto Markets’ fully functional alternative trading system (ATS) and Noonan said:
“This investment and partnership will sit alongside other equity funding and coincides with Rialto Markets reaching $1.2 billion in signed contracts with companies looking to raise capital through Reg A, Reg CF crowdfunding and institutional Reg D investment offerings since the start of 2022, part of a total $2.5 billion business pipeline.
“The term ‘eco-system’ is often over-used in modern business, but it truly applies to the revolutionary thinking behind this growing group of complementary and layered partnerships instigated by Inveniam, soon to be followed by more.”
She was referring to existing Inveniam alliances with digital securities routing and settlement network, Ownera, and Tokeny, which enables the issue, transfer, and management of assets on blockchain.
“We are all integrated yet separate entities,” she added. “Able to work quickly with each other to keep pace with private market developments because, if crowdfunding and the private markets are already moving fast, that’s nothing compared to the explosion which is imminent.
“Meantime, others have chosen to spend a lot of time and money to create ‘one-stop shop’ juggernauts, but it remains to be seen whether they can match the economies and flexibility our partnerships offer.
“And this co-operative rather than acquisitive approach has already worked in other big enterprise sectors, such as the media and pharmaceuticals, where household name ‘supertankers’ are working effectively with newly launched ‘speedboats’.”
Earlier this month Shari Noonan received the prestigious Positive Change Visionary Award in memory of Instinet Co-Founder Jerome Pustilnik, at the 2022 Markets Choice Awards – former winners include Wall Street luminaries such as Bill Brodsky, Dan Royal, Jennifer Nayar, Larry Thompson, and Thomas Peterffy.
Commenting further on her company’s new partnership: “Trading shares used to be restricted to certain companies that could afford to publicly list on a platform such as the New York Stock Exchange or Nasdaq, but a regulated secondary market for private company shares offers trading and liquidity, and ultimately, price discovery.
“Both Inveniam and Rialto Markets – founded in 2015 and 2016 respectively – were not only created to thrive in this new world but also make the perfect fit for a partnership.
“Our broker-dealer skills and secondary market ATS can interface naturally with Inveniam and its proprietary operating system for private market data that drives price discovery and automated waterfall calculations. This unlocks secondary trading in the private securities market for retail and accredited investors.
Inveniam CEO and Founder Pat O’Meara said: “In order for there to be more fluid trading of private market securities, an entire eco-system must be established. As such, today’s agreement with Rialto and Inveniam is an incredible advancement towards building that fully functioning eco-system.
“This is great news for middle market companies in search of capital and price discovery and is reminiscent of the development of the ECN (electronic communication network) markets in the ‘90s.”
He added that the partnership arrives at a key point for private market companies, with investment into their capital assets growing four times faster than public markets during the decade up to 2019.
The lull in 2020 at the start of the pandemic, was then followed by a rebound to a new global record of almost $1.2 trillion according to McKinsey, highlighting that more companies are staying private longer or bypassing going public.
Shari Noonan added: “So, the private markets acceleration continues – Forbes predicts it will grow from $7 trillion to $30 trillion by 2030 – and our new partnership enables Rialto Markets to incorporate various components of Inveniam’s digital securities data and real-time market data, thereby delivering transparency and trust for market participants.”
For further context on this agreement and the formation of this private market trading ecosystem, please visit Pat O’Meara’s post.
For parties interested in how they can leverage Rialto Markets and Inveniam for the capital formation and price discovery objectives, please contact: