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How to invest directly in some of Australia’s most successful private tech companies
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- Well-known private tech companies loved by their users are turning their loyal tech-savvy users into investors
- Private tech companies increasingly look to private markets with less costs of a public listing to raise capital
- Since delisting from the ASX in 2019 Animoca Brands has risen 1,300% with millions of shares transacted
Private tech companies are harnessing their popularity and turning their huge loyal followings in the digital world into passionate investors. Australian trading platform for securities in unlisted companies and funds PrimaryMarkets, said therer is a growing trend among well-known brands to turn their tech-savvy loyal customers into investors.
Among well-known brands its features is Animoca Brands (Animoca) and Virtual Gaming Worlds (VGW), two of Australia’s largest private gaming businesses.
PrimaryMarkets said standing out in their respective fields, these brands are loved by their users who believe in the breakthrough technology that powers them and are bypassing traditional investment options in favour of alternative investments that represent the forefront of innovation and the future, such as Web3, online gaming, and the Metaverse.
Since delisting from the ASX in December 2019 at $0.18, Animoca has risen 1,300% (last traded at $2.40), with millions of shares transacted via the PrimaryMarkets platform. The Hong-Kong based, Australian-founded company has a current valuation of more than $4.1 billion.
VGW has risen 2,300% since listing on the PrimaryMarkets platform in September 2018. It was first traded at $0.16 and last traded at $3.70 with a current valuation of more than $2.3 billion.
Who can be an investor?
But being able to buy into the private companies on PrimaryMarkets platform doesn’t come cheap. The minimum trade order value of each parcel/order is $5000.
The company said as part of Australian compliance rules, investors are required to complete a KYC/AML check and sophisticated investor check on the platform prior to trading.
To be classified as a sophisticated investor a buyer must have a gross personal income of $250k over the last two years or net assets of $2.5 million plus.
Avoiding cost of public listing
PrimaryMarkets CEO Marcus Ritchie said private markets are growing in popularity as companies look for alternative ways to raise capital.
“Private markets are now offering an attractive investment proposition for companies with large shareholder bases of sophisticated investors,” he said.
“They now have the opportunity to boost their valuation with private investors who truly believe in what they are doing, without the added burden and cost of listing on a public market.
“We have seen significant trading volume in recent months, so liquidity is certainly available.”
Founded in 2016, PrimaryMarkets uses technology to create an independent global trading platform offering a wide range of private investment opportunities and providing long-term investors with diversification and liquidity.
In late 2021, PrimaryMarkets merged with Complii Fintech Solutions (ASX:CF1), which was established in 2007 as a software platform and full compliance system for those dealing in securities.
CF1 announced a solid Q4 FY22, with group revenue receipts from customers of $2.557m in the quarter, a 336% increase from the pcp.
PrimaryMarkets has access to a global investor network of more than 110,000 and is available in 119 countries.
At Stockhead, we tell it like it is. While Animoca Brands is a Stockhead advertiser, it did not sponsor this article
