Rialto Markets, a leading fintech company, 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).
Rialto Markets also support exciting private companies raise capital using Regulation CF, Regulation A+ and/or Regulation D institutional capital formation structures.
Rialto Markets’ technology impact on market change
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 market change, 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 complexity, rules, and regulations with private securities.”
“When you’re thinking about bringing an offering to investors, rules can be very confusing. You never know as a private company issuer raising capital, you’re tripping over complexity.”
“Companies are also staying private much longer. 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.”
Rialto Markets’ ATS, a unique solution
Noonan also believes Rialto Markets’ Alternative Trading System 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 to the ATS, and you can allow issuers to monetize 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 and everything’s taken care of so that the issuer doesn’t have to worry the SEC will come back and say you have to resend this trade.”
Rialto Markets in partnership with LSI
Rialto Markets has just launched its own Regulation CF investment offering on Netcapital’s crowdfunding platform, reaching $238,223 in just a few weeks.
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 Pitchbook, Rialto Markets is part of a global crowdfunding market that exploded from $8.61 billion in 2020 to $113.52 billion in 2021 – a 1021% increase.