They have become hugely popular in 2020 as funding vehicles to take companies public instead of the traditional IPO. There are several advantages of this model, the biggest being the ability to avoid the expensive and lengthy traditional IPO process. These FinTechs are focused on improving the private market by sequentially addressing three distinct challenges about private securities: transparency, price discovery, and liquidity. Zanbato has a very interesting model being a crossing network for institutionally-sized blocks of private securities, and is growing rapidly. Closing CommentsOf all capital markets functions, investment banking (including private funding, public listings, and M&A) has remained human-intensive and relatively unchanged over time.

Source: Forbes August 21, 2020 06:45 UTC