Financial Services - San Francisco, California, United States
What We Do: DreamFunded is building a private tech stock market where employees in pre-IPO companies can sell their shares to investors. Why Are We Doing This: Lack of employee liquidity is a huge problem in Silicon Valley right now as the average time to IPO is on the rise. In 2000, the average time to IPO for Silicon Valley tech companies was 4-years. As of 2014, the average time to IPO is 11-years. This means that companies are taking much longer to go IPO than ever before and is preventing employees from cashing out on their equity shares until the company goes public. There is also a big demand from investors who are looking to acquire employee shares of companies like Uber and Airbnb. What We Are Changing: DreamFunded has built a marketplace that allows shareholders to liquidate some or all of their shares without company approval. Upcoming law changes regarding the JOBS Act (Jumpstart Our Business Startups Act) and the RAISE Act (Reforming Access for Investments in Startup Enterprises Act) will have a massive impact on the equity crowdfunding landscape. Changes to the JOBS Act in 2016 will open up 97% of the U.S. Market by allowing ordinary American's (aka: non-accredited investors) to invest in private companies for the first time in over 83 years. The RAISE Act, which will be signed into law in the next 60 days allows shareholders (employees and investors) to liquidate shares in private companies in as little as 90 days; instead of the previous 12-month holding time. As a result, this allows the DreamFunded Exchange to become the first mainstream private tech stock market. DreamFunded has been mentioned in mainstream media outlets such as Forbes, Inc. Magazine, TechCrunch, Entrepreneur Magazine, Fast Company, Fox News, ABC and more!
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