Long-Term Stock Exchange

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Long-Term Stock Exchange (LTSE)
Founded 2019
Headquarters San Francisco
Key People Eric Ries, Founder and CEO
Products Securities Exchange
Website https://ltse.com

Long-Term Stock Exchange (LTSE) is a new stock exchange, nine years in the making, which began full trading operations Wednesday, September 9, 2020.[1]

LTSE was approved by the SEC on May 10, 2019. It was founded by Eric Ries, a Silicon Valley entrepreneur. Its mission is to give high-growth technology companies more options to list their shares outside of the traditional New York exchanges and reduce short-term pressures on public companies.

The exchange is looking for issuers committed to ESG. It is also designed to appeal in particular to "hot" startups, particularly those that are losing money and want to focus on long-term innovation.[2]

Ries, an author and startup adviser, proposed the exchange to the SEC in November 2018. It is backed by several prominent Silicon Valley figures, including the venture capitalist Marc Andreessen.

According to the exchange's web site, LTSE is the only U.S. stock exchange with diversity and inclusion requirements, approved by the SEC in 2019.[3]

History

Long-Term Stock Exchange was born out of concern from the nation’s tech elite who were frustrated about the public market’s focus on near-term profit. Ries first floated the idea of the exchange in 2011 and helped raise funds for the venture.[4]

Before the launch, the exchange raised about $90 million, with backing from venture capital firms including Founders Fund, Collaborative Fund and Andreessen Horowitz.

The company faced criticism in 2018 by SEC Commissioner Robert Jackson Jr., who said the structure of the exchange could grant founders and early investors in startups too much power at the expense of other shareholders. [5]

Products and Services

Key People

References

  1. Long-Term Stock Exchange opens for business. Pensions & Investments.
  2. U.S. regulators approve new Silicon Valley stock exchange. Reuters.
  3. Linking arms with the Black community in the fight to end systemic inequality. LTSE blog.
  4. SEC Approves new Silicon Valley stock exchange backed by Marc Andreessen, other tech heavyweights. CNBC.
  5. Silicon Valley Stock Exchange Hits a Roadblock. The Wall Street Journal.