The secondary market allows employees and former employees in private tech companies to sell their stocks, and at the same time provides investors with the ability to further diversify their investments and get access to equity pre-IPO startups. But dealing with the private tech sector is also full of blind spots and potholes, as stock sellers and investors are having a hard time valuing the shares and managing the transaction process properly.
Now, Zirra, a research firm that uses AI and machine learning technology to analyze companies better, is partnering with PrivatEquity.biz, a peer-to-peer trading platform that directly connects shareholders in private tech companies with investors and supplies them with the necessary information to manage the investment.
The new partnership will provide investors and stock sellers with a technology-powered analysis of private companies that will supply them with data and insights that will improve their visibility into private tech companies. This includes estimated valuations, NLP-generated lists of competitors, expected time to exit, risk and success factors, as well as a rating of the team, product, momentum, and execution.
That is important in a world in which investment decisions in private companies are still too dependent on rumors or skewed information, rather than on objective, data-driven, thoroughly informative analyses. The partnership will also allow investors to invest in better companies and entrepreneurs that will also align better with their portfolio, based on data, insights, and experts opinion.
The Trading Arena, PrivatEquity.biz’s trading platform, provides further tools to ensure a smooth running of transaction processes. These solutions include tools for private company securities pricing, digital ledger technology used to enhance equity management capabilities and an online secure data room for transaction participants, also allowing to exchange confidential documents.
Based on automated analysis, Zirra offers investors with two products: the Premium Insights Report, a brief discussion of the data gathered, together with a summary of the company’s business and marketing strategy, competitive position, market forecast, exit indicators, HR analysis and inside scoops, curated by Zirra’s analysts. And the Due Diligence Report, a longer, deeper dive into a company, which includes a more elaborate analysis of the company and a comprehensive expert’s opinion set that adds the crowd’s wisdom into the report and a deeper familiarity with the company, industry, and the market.
The combination of a technology-driven analysis, a network of experts, and a curated smart analysis brings a bolder attitude towards the private tech industry which infamously lacks transparency.
Zirra was founded in 2014 by Moshit Yaffe (CEO) and Aner Ravon (CPO) and it currently serves several dozen 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 shares for sale of about $30 million. The shares offered for sales belong to employees or former employees in 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.