Rialto Markets aims to transform a private securities market forecast by Forbes to reach $30 trillion by 2030, up from $7 trillion in 2021.
In an exclusive interview, pioneering fintech company Rialto Markets CEO Shari Noonan revealed aims to impact the private securities market and private equity crowdfunding through secondary trading and its SEC and FINRA regulated ATS (alternative trading system).
Caption: Rialto Markets CEO Shari Noonan forecasts more transformation for private security trading in exclusive Netcapital interview
Rialto Markets also support exciting private companies raise capital using Regulation CF, Regulation A+ and/or Regulation D institutional capital formation structures.
Netcapital’s host of its investor insights webinar series, Eric Cox, interviewed Noonan on the future of private securities and how the company’s trading technology could lead to a huge private market transformation, supporting high growth private companies to deliver much-needed liquidity.
“In private markets, there’s no infrastructure in terms of investors being able to access deal flow and issuers being able to access deals,” explained Noonan. “If you think about public markets, you’ve got exchanges and IPOs that come to market. However, there’s a lot of opaqueness, complexity, rules, and regulations with private securities.
“So, when you’re thinking about bringing an offering to investors, many rules can be very confusing and difficult. You never know as a private company issuer raising capital if you’re tripping over some complexity.
“Companies are also staying private much longer than they used to. Amazon went public three years after its formation, but now companies are staying private for 9-12 years. This is because there’s less capital out there, and there’s a lot of costs and hurdles involved with going public.”
Noonan believes Rialto Markets’ ATS offers a unique solution: “In the primary market, we provide companies with a self-hosted investment solution, allowing the issuer to have their site and presence, which we power behind the scenes.
“Once you’ve raised your capital, you’ll come on to the alternative trading system (ATS), and you can allow issuers to monetize those shares. If you have your private company shares listed on the secondary site, people are more likely to purchase them as they know that they have the chance of selling.
“We aim to ensure there are no restrictions or lock-ups, and everything’s taken care of so that the issuer doesn’t have to worry that state regulators or the SEC will come back and say you have to resend this trade.”
Rialto Markets has just launched its own Regulation CF investment offering on Netcapital’s crowdfunding platform, reaching $238,223 in just a few weeks.
Since launching the raise, Rialto Markets also announced a partnership with the upcoming Emerging MedTech Summit taking place in March 2022 with Medtech market analysis firm Life Science Intelligence (LSI).
Rialto Markets aims to offer exciting Life Science and Medtech businesses the opportunity to raise capital and trade shares on its ATS, accelerating healthcare solutions that have the potential to have a real impact on life longevity, personalized medicine, and diagnostics.
According to investment research and data monitoring platform Pitchbook, Rialto Markets is part of a global crowdfunding market that exploded from $8.61 billion in 2020 to $113.52 billion last year – a 1021% increase.
To watch a replay of this full investor insights interview, click here. You can view Rialto Markets’ limited Reg CF crowdfunding investment offering via the link here.
About Rialto Markets
Rialto Markets is a FINRA Registered Broker Dealer (Rialto Primary) operating an SEC recognized Alternative Trading System (Rialto Secondary) for private securities including those issued as a Digital Asset Security. Rialto Primary supports companies issuing equity and debt securities through Reg A+, Reg CF, and Reg D exemptions. Rialto Markets is registered in all 50 states including those requiring a broker-dealer to issue Reg A+ securities.
About Netcapital
Netcapital Inc. is a fintech company empowering entrepreneurs to succeed. Netcapital help companies at all stages to build, grow and fund their businesses with a full range of services from strategic advice to raising capital. Netcapital’s online private investment platform allows companies to close capital digitally and provides investor access to new investment opportunities.