U.S. regulators approve the Long-Term Stock Exchange • Hacker News Board

Re: U.S. regulators approve the Long-Term Stock Exchange

#151

Post by eries » Sat, May 11, 2019, 1:24 PM UTC

defertoreptar wrote: post #148

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

What are the key differences between a LTSE and a regular one?

We are the only stock exchange that was built from the ground up to serve companies and their long-term investors primarily. We have a different philosophy, business model, and eventually will have different market rules than the legacy exchanges.

We have nothing against those older institutions or against traders for that matter. We simply think the next generation of companies is looking for something different. It’s a strength of the American system that it supports competition and allows us to give people a choice.

We will publish additional details as we are able to.

Re: U.S. regulators approve the Long-Term Stock Exchange

#152

Post by jonpaul » Sat, May 11, 2019, 1:29 PM UTC

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

1) What are some of things you did to validate this idea in accordance with the Lean Startup Methodology?

2) Do you think any approval of this by the regulators was an attempt to stay competitive to the rise of crypto crowdfunding / instant liquidity via crypto markets (ICOs, STOs, IEOs, etc)?

Re: U.S. regulators approve the Long-Term Stock Exchange

#153

Post by eries » Sat, May 11, 2019, 1:39 PM UTC

jonpaul wrote: post #152

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

1) What are some of things you did to validate this idea in accordance with the Lean Startup Methodology? 2) Do you think any approval of this by the regulators was an attempt to stay competitive to the rise of crypto crowdfunding / instant liquidity via crypto markets (ICOs, STOs, IEOs, etc)?

1. We use it in a lot of ways big and small.

I’d say two notable examples are building our tools platform (http://LTSE.com/tools) for early stage companies which has allowed us to do exchange-like things long before being operational as a national securities exchange and our earlier attempt to build the exchange with a legacy partner. That partnership ultimately failed but in the process we learned a lot of essential lessons that set us up for success. Classic MVP.

2. Not really. They are obviously aware of those things and I have found them knowledgeable and conscientious in wanting to protect and serve the public. But the process to create a stock exchange is defined by law and they followed that to reach their decision. If you read their almost 50 page approval order, you’ll see how detailed their analysis is.

Re: U.S. regulators approve the Long-Term Stock Exchange

#154

Post by conanbatt » Sat, May 11, 2019, 1:42 PM UTC

memmcgee wrote: post #96

conanbatt wrote: post #86

I think there is big potential value in a new exchange that optimizes for cheap IPO'ing rules. Something between Nasdaq and Wefunder. I'm not persuaded by some of the ideas they have (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value"). But if only by competition they make listing cheaper and easier it could have a big impact.

>I'm not persuaded by some of the ideas they have (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value"). What on Earth does this mean?

I define a value as an idea or concept you will appreciate at the sacrifice of something else.

Most speeches about "diversity" are mostly quota-related and, as another comment said, imply is a good on its own: thus not a value.

I have plenty of other opinions about using diversity as a value, but what you can see objectively is that if you grabbed 100 companies that are sensitive to that language, most will be tech. Thus, the selection is gravitating.

Re: U.S. regulators approve the Long-Term Stock Exchange

#155

Post by conanbatt » Sat, May 11, 2019, 1:44 PM UTC

elliekelly wrote: post #101

conanbatt wrote: post #86

I think there is big potential value in a new exchange that optimizes for cheap IPO'ing rules. Something between Nasdaq and Wefunder. I'm not persuaded by some of the ideas they have (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value"). But if only by competition they make listing cheaper and easier it could have a big impact.

Several studies[1] have found that gender diversity on boards is correlated with reduced risk of fraud. [1] https://www.ft.com/content/cdb790f8-c33d-11e4-ac3d-00144feab...

If its strictly good there is no need to make it a requirement, companies (or investors) will apply this knowledge on their bets.

Also there is a body of research that says open offices suck: doesn't mean it has to be a company governing concept.

Re: U.S. regulators approve the Long-Term Stock Exchange

#156

Post by conanbatt » Sat, May 11, 2019, 1:46 PM UTC

adamsea wrote: post #88

conanbatt wrote: post #86

I think there is big potential value in a new exchange that optimizes for cheap IPO'ing rules. Something between Nasdaq and Wefunder. I'm not persuaded by some of the ideas they have (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value"). But if only by competition they make listing cheaper and easier it could have a big impact.

> (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value") I do not think the bias which you think exists is reflected by the actual makeup of the boards of these tech companies, i.e., who is actually on them.

I'm pretty sure it is more so in tech than say, Oil companies or Wall street.

Also in the end when you mention diversity you end up talking about quotas, because that's the most visible application of it. California already has already set board quotas for women, thus showing you that california companies are by law already "diverse".

Re: U.S. regulators approve the Long-Term Stock Exchange

#157

Post by vasilipupkin » Sat, May 11, 2019, 1:48 PM UTC

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Can you explain why another exchange is needed for this? A company is free to issue a special share class and list it on one of existing exchanges, no problem. There is nothing stopping companies from doing this long term incentive thing now. If they aren't doing it on existing exchanges, why would they do it on your exchange?

Re: U.S. regulators approve the Long-Term Stock Exchange

#158

Post by conanbatt » Sat, May 11, 2019, 1:50 PM UTC

AsyncAwait wrote: post #125

memmcgee wrote: post #96

Earlier quoted context omitted.

>I'm not persuaded by some of the ideas they have (like adding diversity to their governing board, seems designed to be exclusive to tech-startups that already have a bias toward that "value"). What on Earth does this mean?

I strongly suspect the parent is one who buys into the James Damore thing of companies adding diversity for the sake of it and the like...

I can see you preach tolerance.

Re: U.S. regulators approve the Long-Term Stock Exchange

#159

Post by bk8335 » Sat, May 11, 2019, 1:56 PM UTC

I couldn't see it in the reuters article so apologies if this is no longer relevant. Is the plan still to give different number of votes depending on how long the shares have been held? If so, wouldn't selling your shares you've held for a long time destroy value i.e. by resetting the votes to zero? Also, if different shares have different values, would they each have different prices, or would the listed price be some weighted average?

Re: U.S. regulators approve the Long-Term Stock Exchange

#160

Post by NashidAli » Sat, May 11, 2019, 1:57 PM UTC

eries wrote: post #128

Hey everyone, Eric Ries here, founder and CEO of LTSE (and also you may remember me from such roles as the Lean Startup guy). Day one of approval has been kind of exhausting with all the attention but I wanted to stop by this thread and say hello. Have questions? Happy to answer as best I can. Keep in mind that this is a highly-regulated startup so we are sometimes limited in what we can say publicly. I’ll do my best…

Eric, congrats on the SEC approval. I really love this idea. I'm an SEC RIA, developing a mobile app called Gainvest for investors to access private opportunity zone funds and I view it as evolving into a similar marketplace but for private funds. I have two questions if you have time :) 1. How do you see this ecosystem evolving over time re: mobile platform, global outreach/expansion, and access to foreign direct investment? 2) Do you anticipate private funds or investment banks themselves being able to list on the LTSE?

Again, congrats, best wishes.

Nashid