Hiive, a secondary market for private securities, has raised venture funding, setting a post-money valuation of $77 million on the Canadian startup. The company reportedly raised USD $4.2 million in a SAFE. Hiive was founded in 2021.
“We are pleased to announce that we’ve wrapped up our first institutional funding round. This is on the back of incredible traction since the official launch of our platform last July! In the past 15 months, we’ve seen 500% growth across key metrics, including user sign ups, postings made, and trades crossed on the Hiive platform. A big shoutout to our earliest backers who are aligned with our vision of a more centralized, transparent, and automated private market.”
Investors in the funding round include Uncorrelated Ventures, Splash Capital, Harmony Partners, Hack VC, Agmen Capital and noted Fintech entrepreneur Renaud Laplanche (LendingClub and Upgrade founder).
Hive said their vision is to unlock value for investors and employees in pre-IPO companies. They aim to grow an automated and centralized market for private securities – globally – “while eliminating the opacity and uncertainties traditionally associated with private market trading.”
Hive has four co-founders, including CEO Sim Desai, CRO Prab Rattan, COO and GC Sarah Huggins, and CPTO Stuart Eccles.
Hiive is registered as an exempt market dealer in Ontario and British Columbia and regulated by FINRA/SIPC in the US. Hiive is also approved to operate an ATS or alternative trading system in the US. All investors using the marketplace must be accredited and pass KYC/suitability checks.
Read the full October Private Market Report here: https://t.co/TezyOedIiL
— Hiive (@Hiive_HQ) October 12, 2023
In a market report published in October, Hiive reported more than 3,000 live orders to buy or sell on the platform across approximately 570 private late-stage companies.
The value of active listings on the marketplace registered almost $2 billion.
Desai told Betakit they are not burning much cash and, therefore, able to utilize the funding to accelerate their growth.
Providing trading in private securities helps early investors and employees access liquidity when they need to. It is typical for employees in startups to be paid, in part, with shares of the firm to align interests. Private markets also provide investors with an entry point prior to a company becoming a public firm, which some insiders now view as more of an exit opportunity than an entry point due to the high cost and compliance that comes with becoming a reporting firm.
At the same time, Hiive is not the only platform offering a secondary marketplace for private securities, with most competitors focused solely on home markets. The question is, can Hiive capture sufficient market activity in the already active private securities market to enable the type of trading investors would like to see. It was not immediately clear if or how soon Hiive would pursue European or Asian private firms.