A Few Reasons Why Investors Should Choose Us
We believe that the future of financial world will look very different from what it looks like today and we offer qualified investors the opportunity to invest in the companies and products that are building the future of the financial world.
Invest with Specialists
We are a global online investment platform dealing with financial innovation and technology.
Receive our unique information package to help you make a prudent investment decision.
We are not just introducers. Our team assists with documentation, admin and payment for both investors and deals.
Ongoing Investor Relations
Investors and businesses can easily keep-in-touch online throughout the investment lifecycle and store / download all documentation in one place.
Our community is truly global, with active investors from all around the world who all share the belief that the future of finance will look different not only from the past but also very different than the present.
Register with The Elephant
Fill out our brief questionnaire so that we can accredit you under the securities laws and understand your investment objectives.
Create a Watch List
Select shares of interest and receive news feeds and research regarding those shares.
Select an Investment
Use our research and investment tools to help evaluate private high-tech shares and browse inventory.
Meet Your Private Securities Specialist
Your Private Securities Specialist will be your guide to The Elephant platform, answering questions about investment opportunities.
Close Your Transaction
Your Private Securities Specialist will provide the necessary legal documents and other assistance to close your transaction smoothly.
View your investments online and receive news and research updates on the company’s progress.
The Elephant Research & Insights helps investors understand and track the value of their portfolio and prospective investments with our proprietary, institutional-quality research and online portfolio management tools.
Discover pre-IPO Private High-tech Stock Trading the Secondary Way
Introduction: The Goal – Investing in a Startup Before the Big Break Out
For years, private investors have viewed with envy venture capital funds and professional investment entities that had the good fortune of having invested in small startup companies which were subsequently acquired or went public. These developments happened in a relatively short period of time and translated into hundreds of millions of dollars, reaching sometimes even into the billions of dollars.
This market has been out of reach for the private investor, that is until now!
Who does not long to get their hands on a young and exciting high-tech company before it makes its highly-anticipated exit?
Who would not want to be part of high-multiplier investment when these high-tech companies reach the public market or are acquired by the world’s biggest multinationals?
Save for a few lucky early-stage angel investors, private investors simply could not get their foot inside the door in order to reap the benefits of high-level returns that the high–tech startup industry has to offer.
The Elephant’s platform offers private investors unique access to pre-IPO private high-tech shares, offered by employees, former employees, company founders, as well as service providers.
We strive to make our portfolio attractive and interesting by establishing preconditions that must be met in order to be offered on the Arena.
These preconditions are set in place to ensure that only shares of private high-tech companies that have gone through a round of investment from professional investors and leading venture capitalists, and/or had a substantial amount of funds invested in them as equity, are eligible to be considered as potential candidates in the scheme.
You Too Can Invest in Startups
A relatively new channel providing investors with a unique diversification channel is the secondary market in the high-tech sector. Currently, for the very first time, private investors can also buy directly from founders and employees stocks in young high-tech companies whose most important leap in value is yet to come – their exit event.
The Elephant is the premier company active in this field, both facilitating transactions and paving the way to transactions on other platforms. The Elephant manages a platform devoted to trading private high-tech startup company securities.
In the past, you could not only get your hands on the stocks of startup companies of this kind, you could not even access information about them, as these were privately held companies, under no obligation to reveal information to the public. Questions like: What is the value of their technology? What are their sales volumes? What is the capital structure of these startup companies? All went unanswered as this information was confidential and completely inaccessible.
This has now changed and with the establishment of private information companies such as IVC-Online, crunchbase.com and others, private investors can get their hands-on critical information, in order to more rationally and qualitatively base their investment choices. True, these are not the full disclosures and financial statements that investors in public companies are used to, but it is preferable to the complete lack of information that was once the case with secondary investments.
Accordingly, private investors can not only invest in startup companies, but can make informed investment decisions and filter out the best, most-promising startup companies to invest in thus increasing the likelihood of receiving significant returns.
Not an Option for Everyone
It is important to note that investment in startup company securities is usually the domain of more sophisticated investors who hold significant equity and wish to diversify their investments and allocate funds to higher-risk, higher- return channels and sectors.
The Israeli Securities Law does not permit a company or an employee to offer their securities to more than 35 unaccredited investors during any 12-month period, in order to protect small, inexperienced, non-professional investors from making investments of this kind.
Reaching the Best Companies
Every investor knows that a startup company’s rate of success is not high and investing in such companies is a risky business. The aim of the Trading Arena is to provide investors with only the highest quality investment options. Therefore, only securities of pre-IPO companies that have raised tens to hundreds of millions of dollars from venture capital investors are offered on the Arena to investors, this way, the shares offered on the Arena present a significantly lower risk to investors
Not all high-tech companies can be admitted to the Arena. Only securities of companies that have passed the strict scrutiny of The Elephant’s staff who have examined the company and checked that all threshold conditions have been met may be offered on the platform and accessed by the pool of investors interested in investing.
Investing with the Most Professional Investors
How can a private investor who is unfamiliar with the high–tech startup environment knows if they are investing in the right companies and in the right sectors? What guarantees are there for the mitigation of risk involved in investing in startups? How can the investor be assured that they are not taking a huge financial risk?
Our solution is to include in the Arena only companies which have already received a vote of confidence from expert venture capital investors. This way, you are in the “same boat” as professional investors whose expertise is in high-tech startups.
Possibility of Smaller Investment Amounts and Creation of Your Own “High Tech Fund”
Another concern expressed by private investors who gain access to invest in startup companies is the size of the investment. Often investors wish to get their feet wet making a small investment in order to make sure they are making a good deal before increasing the size of their investment and to diversify their investment portfolio. The Elephant’s Arena for investing in privately held company securities has a solution to this issue.
The Elephant’s solution is to offer the option of a small value investment as low as US$100,000 in any specific share. This enables investors to diversify their investment portfolio and to lessen the risk related to a specific company, while they retain the ability to decide to increase their investment in a specific share at a later stage.
Frequently Asked Questions
How do I buy shares in a private company?
Buying shares of private companies can be challenging. To complete a transaction, you must find a seller of the desired shares, negotiate the price, execute legal agreements and work through the issuer’s right of first refusal and other transfer requirements and restrictions. Applicable securities laws must also be understood and complied with. The Elephant helps buyers navigate through each of these steps.
How do I value private company shares?
Unlike public companies, private companies are not generally required to make financial disclosures to shareholders or prospective investors. There is also no formal, central marketplace where pricing from prior investment or transactions is published. As a result, valuing private company shares can be difficult. Private market investors can, however, leverage The Elephant’s trade and valuation data as well as our proprietary research. In addition, your Private Securities Specialist facilitates transactions for leading private high-tech companies on a daily basis. He or she can share their insight into the market and bring together all available information to help you come to an informed decision on valuation and price.
Who can transact in the private secondary market?
Typically, to purchase unregistered securities (i.e., private company stock), you must be an “accredited investor” or a “qualified institutional buyer.” These terms are defined under the securities laws as individuals and corporate entities meeting certain financial and sophistication tests. There is, however, no such accreditation requirement for those selling unregistered securities.