Aug. 8, 2024

Creating a Private Stock Market

Creating a Private Stock Market
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Sim Desai, founder and CEO of Hive, discusses the creation of a secondary stock market for private companies. He explains the challenges of the current system, where selling private stock options is fragmented and opaque. Hive aims to centralize and automate the secondary market process, providing a platform for buyers and sellers to connect. The target market for Hive ranges from small companies with a post-money valuation of $300-500 million to large companies like SpaceX and OpenAI valued at $100 billion. While Hive is not accessible to retail investors, other providers cater to that market.

Takeaways

  • Hive is creating a secondary stock market for private companies, addressing the challenges of the current fragmented and opaque system.
  • The target market for Hive includes small companies with a post-money valuation of $300-500 million to large companies valued at $100 billion.
  • Hive provides a centralized and automated platform for buyers and sellers to connect, improving transparency and liquidity.
  • While Hive is not accessible to retail investors, there are other providers that cater to that market.

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This episode is sponsored by Full Scale:
https://fullscale.io/

Find out more about Hiive here:
https://www.hiive.com/

Learn more about Sim Desai here:
https://www.linkedin.com/in/sim-desai-a357aa11/

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    Sound Bites

    • "There seemed to be a real opportunity to centralize and automate the secondary market process."
    • "The retail investor world is hungering for access to this stuff."
    • "Hive has about 2000 companies listed on its platform."

    Chapters

    00:00 Introduction to Hive and the Need for a Secondary Stock Market

    06:29 Target Market and Growth of Hive

    10:35 Competition and Differentiation of Hive

    12:45 Listing Companies on Hive and the Role of the Company in Transactions

    21:34 The Future of Private and Public Markets

    23:55 Revenue Model and Information Disclosure on Hive

    27:33 Potential for Funds on Hive

    31:47 The Role of Blockchain in the Secondary Stock Market

    35:19 Advice for Marketplace Entrepreneurs

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