How Can TWO12's Securities Auction Platform Help Your Business?


C-Corporation boards and LLCs managing members can control an auction for their securities allowing cap table members to sell their personal shares at a fair market price.

 

Why use TWO12's securities auction platform?

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How it works in 3 steps?

 

  • 1. Set the parameters of your blind dutch auction

  • Date, participation deadline, floor price, ceiling price. 

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  • 2. Whitelist & set allocation

  • Approve participants & set min/max buy & sell limits for each. 

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  • 3. Execute

  • Run auction, escrow distributes funds, and one-click cap table update. 

 

Where do the buyers come from?

 

  • Allow existing cap table members to buy & sell from one another. 

  • Approve new investors from your network to participate. 

  • Select companies can tap TWO12's network of investors for an added fee. 

Pricing

 

  • Access our turnkey and regulatory compliant technology for a fixed fee. 

  • Select companies get access to TWO12's investor network for an additional transaction fee. 

The TWO12 difference

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Generate Liquidity at a Single Point in Time

  • Compress liquidity, generate fair market pricing with as few as 3 participants.
  • Batched transactions means less operational overhead, expense, and risk.
  • Keep control of who enters and exits your cap table.

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Advantages Over Exchanges

  • Exchange related financial disclosure costs can be between $1.5 - $2.5 million/year.
  • A floating and continuously changing price is a distraction for your entire cap table.
  • TWO12 Auctions are affordable and occur at a point-in-time. Once the liquidity pressure has been released, get back to building your unicorn business with your student loans paid off, a down payment on a new house, and without the distraction of a floating price.

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Advantages Over Equity Marketplaces

  • Marketplace transactions match one off sellers and buyers, the Company’s legal team must deal with continuous Right of First Refusal (ROFR) requests which increases legal spend.
  • Marketplaces also increase risk as the company either loses control of their cap table by approving transactions (to potentially unknown parties) or they lose control of their company IP as they must disclose information if exercising ROFR rights. 
  • TWO12 Auctions allow companies to generate liquidity while keeping control of new entrants to their cap table, disclose information on their timeline, and batch transactions.

Customer testimonial

  "After grabbing a huge chuck of market share, I'm looking forward to using TWO12's Securities Auction Platform to help generate liquidity for early investors, employees, and founders"

 

Kai Blache, President of TicketSocket

 

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