Netcapital (Nasdaq: NCPL, NCPLW), a digital private capital markets enabler that operates a Funding Portal, has announced the launch of its beta version for a secondary trading platform to a closed group of users.
Through a previously announced trading relationship with Templum Markets – a company that operates an ATS, this secondary trading platform may “provide investors who purchase stock through the Netcapital funding portal with the potential for secondary trading through access to Templum’s alternative trading system.”
Templum is a company that “provides capital markets infrastructure for trading private equity securities and operates an alternative trading system (ATS) with approval in 53 U.S. states and territories for the trading of unregistered or private securities.”
Netcapital intends to offer such secondary trading capability “through the Templum ATS to all Netcapital issuers and investors before the end of 2024.”
The operation of the Templum ATS, however, “remains subject to extensive regulation and oversight.”
As mentioned in the announcement, any regulatory delays or objections “will result in delays in their ability to launch the proposed secondary trading platform, if at all.”
Martin Kay, CEO of Netcapital Inc said:
“This is an important milestone for Netcapital. Lack of liquidity is a key issue for investors in private companies in our targeted market, and we believe this capability represents a strong competitive advantage and a key differentiator for Netcapital within the digital private markets landscape.”
The company also operates a consulting group, Netcapital Advisors, which “provides marketing and strategic advice and takes equity positions in select companies.”