The Long-Term Stock Exchange (LTSE) started as an idea in Eric Ries's 2011 book The Lean Startup. He had hoped someone would take the idea and run with it. No one did. In 2015, Eric Ries and John Bautista founded LTSE. Ries believes the volatility of traditional markets where increasing per-quarter share price is dominant cuts the motivation for long term growth. Ries said in an interview with Vox,
That whole complex – of the beat-and-raise game and therefore companies going public later and therefore the public being locked out of growth and all these macro trends that relate to the economy – I think they share common causes. And I'm not grandiose enough to think this one reform will solve the whole thing. But if we're going to have a capitalism 2.0, it's going to need a capital market to be listed on.
As the name suggests, the LTSE aims to exchange which combats short-term thinking and investing in favor of long-term shareholding and long-term thinking. To do this, LTSE has a rule-book which gives incentive to long-term share-holding through increased voting power, restricts the short-term incentives given to executives, a board-level long-term product and strategy committee to focus on issues of governance and sustainability and additional disclosures.
LTSE also offers financial products to help bring companies to their IPO. These include
This is a free equity management and planning tool meant to help companies structure and record company ownership, collaborate with stakeholders and model future investment rounds.
Offers a 409A valuation.
A tool to plan and manage finances, explore scenarios and track planned versus actual spending.
A headcount planning tool with built-in market data to help adopt a structured compensation plan while preserving cash and equity runway.
Helps investors request, manage and aggregate portfolio information.
A calculator for exploring the impact of convertible notes and SAFEs on founder ownership.
A guided assessment of a company's readiness to go public.
A tool to help employees value their stock options.
LTSE raises $50 million
The Long-Term Stock Exchange raises a $50,000,000 series B round from Obvious Ventures, Initialized Capital, Founders Fund and Andreessen Horowitz.
Software Eng Manager
Fin Markets and Policy
Director of Global Customer Development
Chief Commercial Officer
Chief Policy Officer
Mirna De Jesus
Product Engineering Lead
Director of Product Management
Chief Marketing Officer
Special Assistant to the CEO
Long-Term Stock Exchange, Inc.; Notice of FIling for Application for Registration as a National Securities Exchange
November 30, 2018
Securities and Exchange Commission, In the Matter of the Application of Long Term Stock Exchange, Inc. for Registration as a National Securities Exchange
May 10, 2019