PrivatEquity.biz, an innovative online peer-to-peer platform that allows investors and institutional investors to directly buy securities of private high-tech companies at the pre-IPO stage, is partnering with Zirra, a research firm that uses AI and machine learning technology to .analyze and value companies. The new partnership will provide stock owners with better visibility into their companies (which are known for keeping their metrics out of the public eye), and to support better selling decisions – an important advantage in a world where private tech companies’ valuations are fluid, rather than based on objective, data-driven, thoroughly informed analyses.
PrivatEquity.biz manages a platform devoted to trading shares of private tech companies. Current or former employees, company founders, or service providers offering shares are matched with sophisticated investors. This answers the rising demand for private company shares by tech investors who want to lower their risk and gain accessibility to stocks in the pre-IPO stage.
As many shareholders in private tech companies see their share neglected or even forgotten after leaving the company, they will now enjoy an easier and faster way to manage the process that includes converting options to stocks, selling them and manage the remaining stocks.
With Zirra, PrivatEquity.biz will be able to provide stock sellers with technology-powered analyses of private companies, supplying them with a data-driven method of valuation and allowing them to better understand their company share. In addition Zirra’s technology also provides a rating of the company’s product and momentum, providing the stock seller with additional signals as to whether the company is on track to attaining success. Investors also receive a full analysis of the company, providing them with a better understanding of the stock they are buying, thus decreasing misunderstandings.
The secondary market offers employees who received options through a company stock-option plan and which are vested, to reach their exit by exercising some of the shares in their possession. On the other hand, it gives them the opportunity to continue to benefit from the increase in the value of the company, assuming they retain some of their holdings. Selling on the secondary market greatly reduces the risks and enables stock sellers to diversify their portfolio.
Zirra was founded in 2014 by Moshit Yaffe (CEO) and Aner Ravon (CPO), and it currently serves several dozens of VCs and private investors from Israel, Europe, and the United States. Its list of customers includes firms such as Microsoft Ventures, Microsoft Accelerator, IBM, AOL, 83North, Deutsche Telekom Capital Partners, IGP, and Viola. Zirra is backed by investors such as former Microsoft execs Moshe Lichtman and Soma Somasegar, AOL and Professor Dan Galai.
PrivatEquity.biz’s is now entering its commercial phase after meeting the conditions of the market, successfully presenting total employees or former employees’ shares for sale of about $30 million from leading private tech companies s such as Xiaomi, Palantir, Gett, Ezbob, IronSource, and DocuSign. About 2,000 private investors are listed on the platform, which was recognized by Red Herring as one of the top 100 innovative companies in Europe. PrivatEquity.biz provides a trading platform that directly connects shareholders with investors, as well as the necessary information necessary to manage the investment, with maximum privacy and transparency.
Zirra – Flow chart