Price discovery in illiquid markets is tough… you never know the price at which you can actually trade until you have a signed document. And before that, the process of discovering bids/asks and negotiating with counterparties can be time-consuming. Some orders are firm, some negotiable, and counterparties can be flaky.
A simple way to solve this is by making orders firm and time-bound. With Augment Auctions,
- Sellers put up a block of shares for a set period of time (1-2 weeks) - Buyers can bid on the share price of the block, all-or-nothing - Bids are anonymous, but are viewable by any Augment user - All bids are firm and binding - Winner locks in a transaction with the seller - To avoid buyers placing all their bids in the last few moments, any bid placed in the last 5 minutes will extend the auction another 5 minutes, and bids must be placed in minimum increments of $0.25!
Think a much cooler version of eBay!
We believe Auctions are one step towards making the private markets more liquid and transparent.
If you’re a seller considering auctioning off your shares, or a buyer wanting to participate or learn more, contact us at firstname.lastname@example.org.
* Private market investments involve a high degree of risk, may be illiquid, and should be considered speculative.