Hiive Secures $4.2 million for Private Tech Shares Marketplace

Published 6 months ago

Hiive, a startup based in Vancouver, B.C., has secured $4.2 million in funding for its marketplace that facilitates the buying and selling of shares within privately held, venture-backed companies on the secondary market.

Unlocking the Value of Private Markets

Established in 2021, Hiive’s objective is to unlock the full value of private markets for its users by automating the process of transacting private shares. The platform provides real-time and accurate valuations of late-stage startups. This is based on bid, ask, or trade prices obtained directly from confirmed buyers or sellers on its platform, mirroring the methodology used in public market valuations.

A Solution to Increased Demand

The funding injection comes at a time when many late-stage tech companies are opting to remain private for longer periods due to a broader tech market slowdown. This has led to a surge in demand from investors and employees looking to liquidate shares. Hiive’s platform provides users with insights on how a private company’s stock fluctuates, much like a public stock.

Growth and Competition

The value of open offerings on Hiive was approximately $1.9 billion as of last month, with over 570 companies, including Seattle startups Outreach, Icertis, and Convoy, maintaining active listings. Hiive boasts more than 12,000 users, including over 1,000 institutional members. The startup, which recorded 170 trades last month, has seen its rate and volume of transaction completion grow six-fold over the past year. It faces competition from other private market shares platforms such as EquityZen and Birel.

Revenue and Leadership

Hiive generates revenue by charging a minimum fixed dollar amount and commission for transactions brokered on its platform. The company is headed by CEO Sim Desai, formerly a managing director at Toronto-based investment bank Setter Capital. Desai’s co-founders include Prab Rattan, Stuart Eccles, and Sarah Huggins.

Since the beginning of 2022, Hiive has expanded its workforce from six to 45 employees. The funding round was led by Uncorrelated Ventures, with contributions from Splash Capital, Harmony Venture Partners, Hack VC, Agmen Capital, and Renaud Laplanche, the co-founder of Lending Club. The startup’s post-money valuation stands at $77 million.