Hiive
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 | |
| Private | |
| ISIN | 🆔 |
| Industry | Financial technology, Private Equity, Marketplace, Brokerage |
| Founded 📆 | 2021 |
| Founder 👔 | Sim Desai (CEO) Sarah Huggins (COO) Stuart Eccles (CTO) Prab Rattan (EVP) |
| Headquarters 🏙️ | Vancouver, Canada |
Area served 🗺️ | |
| Products 📟 | Electronic trading platform, Private-equity secondary market, Data |
| Services | Brokerage |
| Members | |
Number of employees | |
| 🌐 Website | hiivemarkets |
| 📇 Address | |
| 📞 telephone | |
"Hiive" is a trading platform for shares of pre-IPO companies. The fintech platform is a centralized forum for buyers and sellers of shares in venture-backed startups.[1] Most of the trading on the marketplace involve the shares of companies that have been valued at $1 billion or more in a venture capital fundraise (commonly referred to as unicorns). Hiive platform users can connect, negotiate, and execute secondary market transactions directly with their counter-party. Users of Hiive include employees of highly valued private companies, venture capital funds, hedge funds, ultra-high net worth individuals, and registered investment advisors (RIAs).
Hiive is a member of the United States Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). The company's alternative trading system (ATS) is regulated by the United States Securities and Exchange Commission (SEC).
Hiive has facilitated secondary transactions involving prominent venture-backed companies such as Discord, Flexport, and Stripe.
History[edit]
Hiive was founded in 2021 by Sim Desai, who assembled a team of co-founders Sarah Huggins, Stuart Eccles, and Prab Rattan to address the unique and complex challenges associated with digitizing a highly regulated securities business. Desai’s vision was to establish a transparent, automated, and centralized marketplace for the private equity secondary market.[1] In 2022, the company relocated from Toronto to Vancouver, releasing its beta product in May and officially launching the trading platform to the public in July.[2]
In October 2023, the company reported that it had reached 170 trades in the previous month, having grown the rate and volume of completed transactions by around six times in the previous 12 months.[3]
Funding[edit]
In October, 2023, Hiive raised $4.2 million from Uncorrelated Ventures, Splash Capital, Hack VC, Agmen Capital, and Renaud Laplanche. The round was raised with a SAFE that included a post-money valuation cap of $77 million.[4][5][6]
Product & Services[edit]
Direct Trading[edit]
Hiive is an online marketplace for buyers and sellers of private company shares.[7] Hiive enables users to connect, negotiate, and execute secondary market transactions with their counter-party in an automated manner without intermediation by a live broker.[1]
Market data and transparency[edit]
Hiive provides users with dynamic marketplace data within the trading interface. The platform features a live order book containing all active orders and listings, and a price chart displaying information on historic bid and ask prices and transactions executed.
The company also publishes a monthly private market report providing an overview of the secondary market for pre-IPO shares based on user-generated data aggregated from its trading platform.This data has been relied on to evaluate the momentum of the private markets, and gauge the market value of private companies where a recent 409a valuation is not available.[7][8][9]
Company liquidity[edit]
Hiive works with issuers to manage liquidity for their shareholders. The company offers an alternative to the traditional tender offer, enabling management teams to set parameters and retain oversight over a dynamic secondary market for their shares.
Users[edit]
Hiive’s sellers mostly consist of current and former employees of highly valued private startups. The employees are typically seeking to liquidate some of the shares they obtained via employee stock option plans. Additionally, investors such as venture capital funds and hedge funds also use Hiive to sell when they are looking to realize gains on their investments or manage their portfolios.
Buyers on Hiive include venture capital funds, hedge funds, so-called secondary funds, angel investors, ultra-high net worth individuals, and registered investment advisors.
References[edit]
- ↑ 1.0 1.1 1.2 Kirkwood, Isabelle (2 May 2023). "Hiive wants to bring transparency to the private equity secondary market". Vancouver Technology Journal. Retrieved 3 May 2023.
- ↑ James, Rod (7 February 2022). "Setter VC spin-out Hiive is buzzing with three new hires". Venture Capital Journal. Retrieved 3 May 2023.
- ↑ Bek, Nathan (17 October 2023). "Hiive, which offers a marketplace to buy and sell shares of private tech companies, lands $4.2M". Geekwire. Retrieved 25 October 2023.
- ↑ Scott, Josh (17 October 2023). "HIIVE SECURES $5.7-MILLION CAD SERIES A TO IMPROVE VC SECONDARY TRADING". Betakit. Retrieved 25 October 2023.
- ↑ Burroughs, Callum (17 October 2023). "hiive-secondaries-marketplace-startup-raises-42-million-2023-10". Business Insider. Retrieved 25 October 2023.
- ↑ name="Geekwire FR">Bek, Nathan (17 October 2023). "Hiive, which offers a marketplace to buy and sell shares of private tech companies, lands $4.2M". Geekwire. Retrieved 25 October 2023.
- ↑ 7.0 7.1 Parmar, Hema (12 March 2023). "Funds Bid for Stakes in Startups Banked by SVB at Steep Discount". Bloomberg. Retrieved 3 May 2023.
- ↑ Primack, Dan (13 January 2023). "Axios Pro Rata:"Unicorn Tears"". Axios. Retrieved 3 May 2023.
- ↑ Shanker, Deena (18 January 2023). "Fake Meat Was Supposed to Save the World. It Became Just Another Fad". Bloomberg. Retrieved 3 May 2023.
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