Find Stable, Growing Companies for Investment Opportunities
There are over 25 million small businesses (businesses with less than 500 employees) in the U.S. While a significant percentage of these companies may be too small to list on the Dream Exchange, once the Dream Exchange is operational, many will fall into the range of a potential listing candidate. Many of these businesses are stable, growing enterprises with long lives ahead of them. Still more of them are developing or perfecting technologies aimed at disrupting some portion of the marketplace.
Access to Early-Stage Opportunities
According to Pitchbook database, 3,444 private equity capital transactions of $500M or under totaling $191.8B, and 8,815 venture capital transactions of $500M or under totaling $81.9B, were made in 2017. Many of these transactions would have been candidates for listing on the Dream Exchange. Until the Dream Exchange becomes operational, the average qualified investor has no real way of finding these potential investment opportunities.
Authenticity of Investment Opportunities
The Dream Exchange has developed a sophisticated examination process to formulate the “onboarding” of proposed securities, whether a potential listing candidate approaches the Dream Exchange directly or through an intermediary. The process shall examine potential listing candidates through an electronic application process involving submission of due diligence materials, detailed human data collection and written transaction disclosures, to ensure that the company is compliant with state and federal securities regulations. The Dream Exchange listing application process is designed to maintain quality standards of the listed companies to create confidence in the market and to generate the initial trading of formerly “private” company equity securities in a controlled, regulated marketplace. These new securities will be venture securities and the new venue for trading them will be the venture exchange - the Dream Exchange.
In addition to vetting listing candidates, the Dream Exchange shall only establish relationships with financial intermediaries, qualified investors, and buyers under a membership agreement to govern the conduct of trading and control access to the Dream Exchange’s trading venue and electronic platform, so long as members remain compliant with the Dream Exchange rules. The company has prearranged with certain database providers to allow for electronic examination of the individual participants utilizing state-of-the-art electronic data retrieval from databases shared with the Department of Homeland Security and the Federal Bureau of Investigation.