Caplight launches tool for tracking venture-backed private company stock prices and valuations

Rick Steves

Caplight has launched a tool for tracking venture-backed private company stock prices, valuations, and trading activity.

Going by the name of Caplight Data, the solution provides users with access to a large and growing dataset of over 10,000 private company transactional data points, representing over $170B of volume, as well as over 20,000 investment fund marks of private company stock prices.

Venture capital-backed private companies represent over $3.8 trillion in value across over 1,000 companies, according to CB Insights. Caplight’s platform offers investors the ability to make long and short directional investments on Venture-backed private company stock using proprietary financial products and unique price discovery tools. Investors utilize the Caplight platform for the purpose of hedging, income generation, shorting, or investment strategies on private company stock.

370 late-stage private companies available at Caplight Data

Pricing information is currently available for 370 late-stage private companies, according to the firm which claims that lack of visibility into private company stock prices prevents many investors from participating in the private secondary market.

Caplight Data leverages its MarketPrice evaluated pricing algorithm which provides near real-time tracking of private company stock prices with demonstrated high accuracy at predicting the price points of future secondary-market trades. MarketPrice can be used to track a portfolio of private company stock prices over time.

Caplight enables directional investments on private company stock

In addition to providing price transparency, Caplight Data powers the firm’s synthetic derivative transactions. Using MarketPrice as a reference point, accredited and institutional investors can use Caplight to make long and short-directional investments on private company stock or hedge their existing investment risk.

Until now, the VC asset class has existed ‘long only’, meaning no ability to hedge or make directional investments. Caplight gives investors the tools to actively manage their risk across illiquid assets.

Caplight was founded in 2021 and has raised $10 million from FinTech investors including Better Tomorrow Ventures, Fin Capital, Deutsche Börse, Susquehanna Private Equity Investments, LLLP, and Clocktower Ventures.

Caplight Technologies, Inc. enables investors to take long and short positions on private company stock using structured products and synthetics.

The company’s goal is to bring public market-like transaction data, execution, and settlement mechanics to the private markets. In doing so, Caplight will allow many institutional investors to access the private markets for the first time.

The company was founded by Javier Avalos and Justin Moore in 2021.

Caplight partnering with Eurex for structured pre-IPO investment products to global financial markets

Caplight Technologies has recently secured a strategic investment from one of the leading global market infrastructure providers, Deutsche Börse Group, and will explore collaboration opportunities with the global derivatives exchange Eurex to bring structured pre-IPO investment products to the global financial markets.

With this raise from Deutsche Börse, Caplight has now raised $10 million, including a $5 million seed round led by Better Tomorrow Ventures that was completed in January of 2022. Other investors include Fin Capital, Susquehanna Private Equity Investments, LLLP, and Clocktower Ventures.

Caplight serves accredited and institutional investors including hedge funds, venture capitalists, public investment managers, market makers, insurance companies, and private banks.

Caplight has completed transactions for a range of investors, from those with less than $100 million in assets under management to funds with over $100 billion in assets under management.

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