The LTSE Wants To Be Tech Startups’ Stock Exchange

Last Thursday, the Long-Term Stock Exchange (LTSE) announced it closed a $50 million Series B. In May, the San Francisco startup received SEC approval for listing standards, clearing it to become the U.S.’ 14th national—and newest—stock exchange.

LTSE bills itself as a better venue for startup IPOs. As Axios explains, it’s offering other unique perks:

• Tenured share voting, which gives founders more voting power. Under this structure, shareholders also accumulate more voting power the longer they hold on to the stock.
• Companies would better understand the identity of their shareholders. They’re also required to give more public disclosures (that’s one way to avoid a Theranos redux).

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Emerging tech startups could be interested in the LTSE route because it’s designed to withstand public markets' short-termism and the obsession over quarterly performance. After all, companies focused on advanced technology usually have longer product roadmaps, heavier R&D spending, and the habit of putting off profitability for as long as possible.

When will it be ready? “We think of this as an accreditation with many steps to go,” founder Eric Ries told Axios. Yes, that's the same Eric Ries who wrote The Lean Startup.