Rialto Markets and its new private securities Alternative Trading System (ATS) has opened the door for more investors to trade in the private market.
An early recruit is Digital Twin market leader Cityzenith, which has raised $10m to date and uses Rialto Markets as deal manager for the company’s current $15m Regulation A+ raise.
In the past year, the offering has added over 5,000 investors and seen Cityzenith’s share price increase from $0.575 to $1.50 in just five months, powered by demand for the company’s SmartWorldOS™ software platform, which can create virtual replicas of buildings and cities to track, manage and optimize their efficiency.
Using the new Rialto Cross ATS buyers and sellers now have greater access to shares within US-based private company markets such as those issued under Regulation A+, Regulation CF, and Regulation D, through a viable secondary market.
New investors can place orders to buy shares in companies that have already closed their offerings, and primary investors can place sell orders when they want.
As an SEC-registered ATS, shares can be bought and sold for as little as $10 with no ‘gas’ fees. ATS subscribership is open to all types of investors, such as retail, accredited and institutional.
The Rialto Cross joins several US ATS platforms such as NASDAQ and Dash ATS but will be one of the nation’s first to be specifically focused on enabling transactions in privately held securities.
Rialto Markets’ CEO and co-founder Shari Noonan sees this as starting a new era for private market investing:
“It’s an important step towards creating a more efficient infrastructure for capital formation and secondary trading of private securities. We are excited to be a leader in this nascent market and look forward to working with all participants to ensure wide acceptance.”
The private market is already rising; investment advice service Millionacres estimates that 330,000 investors use the various crowdfunding platforms, and MarketResearch.com forecasts that the global crowdfunding market will grow by $124.35 billion between 2020 and 2024, progressing at a CAGR of 18%.
Cityzenith CEO and founder Michael Jansen believes Rialto Cross is a gamechanger:
“We are excited to be one of the first US companies to offer an ATS to its shareholders. Investors in Cityzenith will no longer necessarily have to wait 3-5 years to access returns. Once we cross our minimum investment threshold, shareholders can sell their shares any time, if they so choose.
“Imagine investing today and securing that type of increase in just a few months, and then potentially selling those shares much earlier.”
Jansen added: “Our current $15m raise has attracted significant interest from accredited investors in recent months, as Digital Twin modelling enables tangible, financial upsides for construction going climate-friendly.”
To hear more from Cityzenith CEO Michael Jansen, please join an upcoming FREE investment webinar ‘Investing in an AI Technology Platfrom for Sustainable Cities’
Cityzenith is based in Chicago with offices in London and New Delhi. The company’s SmartWorldOS™ Digital Twin platform was created for anyone designing, constructing, and managing complex, large-scale building projects, properties, and real estate portfolios but has developed to cover infrastructure, energy projects, transport, health, people movements, and whole cities. Find out more at https://invest.cityzenith.com/
The Digital Twin market is booming; worth $4bn last year, it is expected to be $48.2bn in 2025. Forbes has forecast that 500 major world cities will rely on Digital Twins operationally within five years – Cityzenith has already signed $4.5m worth of commercial Digital Twin contracts this year.