Introducing the Private Liquidity Network

Many of the economy's largest companies by valuation are private, and they are staying that way. The median company now waits 14+ years to go public, according to an analysis by the National Bureau of Economic Research, if it ever does. For most of that time, investing in those companies has meant a series of individual transactions, each arranged separately, each starting from zero.

Finding an opportunity is one process. Deciding to act later, whether to add to a position or to sell it, has usually meant starting over with another separately arranged deal. That is how private investing has worked, and it is why the private market has so often been called a market without behaving like one.

Today Augment is launching the Private Liquidity Network, along with two features that change how positions on Augment can move.

What the Private Liquidity Network is

The Private Liquidity Network is a standing self-serve trading venue for units of pre-IPO SPVs.

The PLN is our biggest step yet toward our mission of making private markets liquid, accessible, and transparent. We’ve built liquidity into the network through our standardized execution rails, documents, and inventory. We’ve also agonized to make the surfaces that investors on the network actually touch, like our web or mobile apps, not only beautiful but closer each day to parity with public markets interfaces. 

Three things make it work.

Real private-company shares underneath. Positions on Augment are backed by real private-company shares.

Standardized units. Investors buy units in a Collective SPV, and the SPV holds the underlying shares. Standardization is what allows a position to be offered for sale later without a bespoke transfer process for every trade.

Different roles in one place. The network is durable and multi-modal: Eligible individuals, institutions, and brokerage and wealth partners can join to buy and sell on the same rails, and the more that join the more liquid it becomes. 

Sell limit orders, now generally available

Eligible holders can now place a sell order for a position directly from their portfolio. Set a minimum sale price, review the order, and submit. The order posts to the network, where eligible buyers can act on it. There is no need to leave your portfolio to place it.

Sell limit orders were released last week to a first group of holders with eligible positions. As of today they are available to all eligible holders, and the buy side is open: eligible investors can act on positions that other holders have posted for sale.

A word on what eligible means. Whether a position can be sold depends on the terms that apply to that opportunity, including issuer restrictions, transfer limitations, required approvals, documentation, and buyer availability. A submitted order is not an assurance of a transaction, and a limit order may expire unfilled even if the specified price is reached or exceeded.

Lightning Close

The second feature is Lightning Close, a faster path from an accepted order to a completed transaction. Now investing in many of our SPVs is faster than ever before, closing as soon as funds are received. We hold shares in inventory to reduce execution risk to our clients.

Speed matters in private markets because time is where deals have historically broken down. A buyer and seller agree, and then weeks of process follow, during which circumstances change. Lightning Close is built to shorten the part of that process that is ours to shorten.

How it works, start to finish

1. Find a company. Search by name or browse the rankings. Each company card carries a label for its current state, such as currently available with Lightning Close, or coming soon.

2. Buy through a Collective fund. Investors buy units in a Collective SPV. The SPV holds the underlying private-company shares. Review the offering documents for the fund, its underlying assets, and the terms before investing.

3. Return to the network. Track the position over time. When you are ready, and if the position is eligible, place a sell order from your portfolio. A submitted order is not an assurance of a transaction.

Minimum investments start at $10k.

Why we built it

We believe private markets were meant to be liquid. The tools have existed for years to make public markets work: standing inventory, standardized instruments, and a place where orders can meet. Private markets have had none of those at once. The Private Liquidity Network is our attempt to put them together.

If you hold a position on Augment, log in to see whether it is eligible to sell. If you are new, create an account to explore current offerings. 

Oh, and did we mention, you can do it all from your phone?

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Sell limit orders are available only for eligible positions and are subject to applicable issuer restrictions, transfer limitations, approvals, documentation requirements, buyer availability, and other transaction conditions. A limit order is not guaranteed to execute and may expire unfilled, even if the specified price is reached or exceeded. Selling securities may result in tax consequences. 

“Pre-IPO” is used generally to describe a privately held company that may be viewed as a potential candidate for a future public offering. The term does not mean that the company has filed for, scheduled, or committed to an IPO. An IPO or other liquidity event is not guaranteed and may never occur.