ClearingBid

Opens IPO investing to everyone

Last Funded July 2023

$5,000,000

raised from 3,900 investors

Highlights

1
IPOs are a huge business ($20 billion in fees in 2021) and the process is highly antiquated.
2
Retail investors are almost always excluded from participating in IPOs. Our model fixes that.
3
ClearingBid makes investing in an IPO as easy as investing in a public stock is today.
4
Only approach in the market that can allow all investors to invest in IPOs the 1st day of pricing.

Featured Investor

Our Team


Allowing everyone to participate in IPOs

The Initial Public Offering (IPO) process is broken. 

Every year, the most innovative companies in the world go public, with tens of billions of dollars changing hands through a process invented over a century ago.

The main problem is access and transparency. IPO investing is only available to a handful of large institutions and banks. The pricing is based on the company's financials, market conditions and expected demand, but in the end, the final price is decided in a "black box."

Current pricing doesn’t reflect actual market demand. 

The actual IPO pricing doesn't happen when a company lists on a stock exchange...

... it happens the night before, when the company sells most of its shares to a handful of large, preferred investors.

As a result of inaccurate pricing and privileged access, when the company's stock begins trading, it can POP 100% or more! This favors the institutions over the company and retail investors. 

Just look at the Airbnb IPO to see how crazy this is:

When Airbnb went public in December 2020, the IPO was priced at $68 per share. When trading began, Airbnb’s stock popped 115% to $146!  

$146!  

That pop, from $68 to $146, represents billions of dollars left on the table by Airbnb’s founders, employees and early investors, with retail investors having to pay a much higher price while also being shut out of the upside opportunity. 

ClearingBid - IPO Investing for Everyone!

We’re creating the new way for companies to go public. 

Our network allows any individual or institutional investor to participate in the IPO process. ClearingBid’s objective algorithm fairly prices shares based on true market demand. And allocations are made to everyone whose orders are at or above the IPO price at the IPO price. No one is favored based on their size, relationships or history. Your money is just as green as the world’s biggest hedge funds. 

It’s a true democratization of Initial Public Offerings. 

With ClearingBid, the price of the IPO is based on the real-time demand for a company's stock, which is visible for everyone to see. This means the final IPO price ClearingBid arrives at is typically more favorable to founders, employees and existing investors of the company going public. 

This also means that new investors can have the opportunity to buy, own and hold shares in companies they know and love from the first trade out! 

In a world where individual investors can use their phone to buy stocks of public companies or shares of private companies, it's time to modernize the IPO.

If we started from scratch, and designed the perfect IPO process for the modern world, we believe the result would be ClearingBid.  

Investors browse through companies planning an IPO on the ClearingBid website.

Our offering pages are where you can see available IPOs to invest in including forthcoming, current and closed offering results.If you're interested in an IPO, click on its offering page to open a treasure trove of data.

The offering page includes the prospectus, virtual roadshow, independent third-party insights and analysis, and more, so that investors can be fully informed on the opportunity.  

You can see the IPO filing range, the clearing price in real-time, deadlines to place your orders, and more.

If investors want to get in on an IPO, they can place their orders through whatever method they currently use to buy stocks, whether that’s with a broker or an online trading platform.  

As bids come in, the lead manager is able to view the full order book in real-time, to more accurately price the IPO in the end.

IPO orders come in real-time

* Note: an IPO order process would not move this quickly; it's sped up so you get the idea.

And this is a key part of ClearingBid’s magic.

The lead underwriter can observe the true investor demand in the master order book but still have the ability to set the final IPO price. This means they can price at the market clearing price (Cprice), or slightly below to assure there’s positive momentum when public trading begins. As a result, investors get a fair price from the outset and the issuer doesn’t leave a lot of money on the table.

It's the best of the existing IPO world married with modern technology.

Our business model is simple. When a company goes public using ClearingBid, we take a small percentage of the offering proceeds, similar to a toll fee, to operate with our network. 

Our first markets - Equity IPOs and Corporate Debt - represent $20 billion+ in transaction fees per year.

Illustrated below, equity IPO fees peaked at $22 billion in 2021. Since then, the IPO window has substantially shut with many companies waiting for overall conditions to improve. This has created a pipeline of IPOs making now, we believe, the perfect time to launch ClearingBid in anticipation of this pent-up demand. 

We expect IPOs to bounce back to pre-pandemic levels in the coming years, i.e., with transaction fees on equity offerings averaging at least $10 billion per year, and transaction fees on corporate debt offerings representing a similar amount – i.e., at least $10 billion per year.  

So, our total market size to generate fees from – just for our initial target markets of equity IPOs and corporate debt – is $20 billion plus in transaction fees per year. 

Source: SIFMA

Although we’re initially focused on IPOs and corporate debt for Phase 1, our product development plan includes a range of asset classes and securities offerings, including: 

  • Munis 
  • CLOs 
  • Federal Agencies 
  • Project Financings 
  • Distressed Assets 
  • Private Lending

To date, we’ve raised $6M which has been used to fully build out the ClearingBid technology and address our regulatory requirements as a registered broker-dealer.

Having recently completed our second FINRA review, we are continuing to expand our team of professionals while preparing to launch our first public offerings in 4Q23.

Note: the above slide contains future milestones which cannot be guaranteed.

Our team of veteran Wall Street professionals has significant experience in investment banking, research, capital markets and exchange technology architecture. 

The IPO market is massive. And the process is broken.  

We’re intent on fixing it and creating a new standard for how every company goes public.

We’re passionate about democratizing the IPO process, so that retail investors are treated fairly and get to participate alongside large institutional investors. 

So we couldn’t think of a better way to raise capital than by opening this round up to investors like you.  

If you have any questions, please feel free to email us at: ***[email protected]***, or ask a question in the “ASK A QUESTION” tab above. 

- The ClearingBid Team 


Overview