FinTech Startup SharesPost Raises $15M USD To Accelerate Security Token Trading

Investing, News | June 21, 2018 By:

Liquidity solutions provider SharesPost has raised $15 million in its Series C funding round led by LUN Partners and Kenetic Capital.

Founded in 2009, SharesPost offers an online platform that links investors with late-stage venture-backed companies and shareholders. It provides the private tech asset class with a suite of trading and lending solutions to facilitate shareholder and option holder liquidity.

SharesPost said the company will use the funds to build out its Alternative Trading System (ATS) for private company shares and security tokens. The funds will also be used to further expand its global reach into Asia.

“Our strategy is to create a single, global marketplace for traditional and digital securities of private growth companies,” said Greg Brogger, Founder and CEO of SharesPost. “Connecting US and Asian investors and companies on our ATS is a key objective in realizing that vision. With the relationships, capital and expertise of Kenetic Capital and LUN Partners, SharesPost is positioned to rapidly expand its presence throughout Asia.”

Based in Hong Kong, Kenetic Capital supports blockchain platforms through investments, advisory services, community building and technology development. As part of the agreement, Kenetic Capital Founder and Managing Partner Jehan Chu will join the SharesPost Board of Directors.

“SharesPost is building what we think will be the world’s leading secondary platform for initial coin offerings (ICO) and secondary trading of security and utility tokens,” Chu said. “Where others are still just talking about when they might launch their ATS, SharesPost has been operating their ATS for years and has the technology, team and customers necessary to enable global trading of digital securities.”

LUN Partners is headquartered in Shanghai and operates multiple investment vehicles, including venture capital and private equity funds. Peilung Li, Founder and Chairman of LUN Partners Group, will also join the SharesPost Board. In addition, SharesPost and LUN Partners will work together to extend the SharesPost digital securities and private market investment platform into Greater China.

“As the number of unicorns in China and the rest of Asia continues to grow, the need for SharesPost’s liquidity platform has become increasingly urgent here,” said Li. “Providing US investors with access to these companies and providing Asian investors with access to American unicorns has enormous value. We are very excited to put our relationships and capital behind the creation of this emerging global marketplace.”

Last month, SharesPost announced that it had successfully amended its Form ATS to include blockchain securities and tokens among those to be traded on its platform. As a result, SharesPost is now well-positioned to conduct ICOs and facilitate secondary transactions in digital securities in compliance with US securities laws.

Earlier this month, SharesPost partnered with blockchain advisory firm Satis Group. The partnership will result in a referral relationship between the two firms, whereby Satis will refer security token issuer clients to SharesPost for ICOs and secondary trading on its ATS, and SharesPost will refer its issuer clients to Satis for end-to-end advisory services.