System And Method For Business To Investor Exchange For Raising Capital And For Creating A Secondary Market For Private Equity

Abstract

The present invention creates a secondary market in private equities by auctioning venture-backed private equities over the Internet to qualified investors. Typical sources for the private equities will be interests in limited partnerships and pre-IPO or pulled-IPO securities. The operator of the system may sometimes take a position in certain private equities so as to have “inventory” to later sell on the system. In a typical buyer-driven transaction using the present invention, a qualified buyer puts out a bid for private assets in a particular area. Sellers who subscribe to the system receive notice of the bid and can then respond. In a typical seller-driven transaction using the present invention, a seller puts out a notice on the system of equities for sale. Buyers who subscribe to the system receive notice and can respond. Either the buyer or the seller may be charged by the system, depending on the transaction.

1 - 32 . (canceled) 
     
     
         33 . A method for creating a secondary market for private equity, the method comprising:
 prescreening securities based on private equity to ensure that the securities meet at least one predetermined criteria, wherein the at least one predetermined criteria comprises that the securities are securities selected from the group consisting of venture-backed securities, private-equity-backed securities, and limited partnership interests;   registering in a computer database the prescreened securities based on private equity;   providing a system configured to auction the registered prescreened securities over an electronic network; and   restricting access to the system to authorized users.   
     
     
         34 . The method of  claim 33 , wherein the electronic network is the Internet. 
     
     
         35 . The method of  claim 33 , wherein restricting access to the system to authorized users comprises only allowing accredited investors or accredited companies to place securities or place trades. 
     
     
         36 . The method of  claim 35 , wherein only allowing accredited investors or accredited companies to place securities or place trades comprises registering the accredited investors or accredited companies with a system operator. 
     
     
         37 . A method for creating a secondary market for otherwise illiquid securities, the method comprising:
 prescreening the otherwise illiquid securities to ensure that the otherwise illiquid securities meet at least one predetermined quality characteristic;   registering in a computer database the prescreened securities;   providing a system configured to auction the registered prescreened securities over an electronic network; and   restricting access to the system to authorized users.   
     
     
         38 . The method of  claim 37 , wherein the otherwise illiquid securities comprise securities selected from the group consisting of securities based on private equity and restricted public securities. 
     
     
         39 . The method of  claim 38 , wherein prescreening the otherwise illiquid securities to ensure that the otherwise illiquid securities meet at least one predetermined quality characteristic comprises:
 prescreening the otherwise illiquid securities to ensure that the otherwise illiquid securities meet at least one predetermined criteria, wherein the at least one predetermined criteria comprises that the otherwise illiquid securities are securities selected from the group consisting of venture-backed securities, private-equity-backed securities, and limited partnership interests.   
     
     
         40 . The method of  claim 37 , wherein restricting access to the system to authorized users comprises only allowing accredited investors or accredited companies to place securities or place trades. 
     
     
         41 . The method of  claim 40 , wherein only allowing accredited investors or accredited companies to place securities or place trades comprises registering the accredited investors or accredited companies with a system operator. 
     
     
         42 . The method of  claim 37 , wherein the electronic network is the Internet. 
     
     
         43 . A method for creating a secondary market for restricted public securities, the method comprising:
 prescreening restricted public securities to ensure that the restricted public securities meet at least one predetermined quality characteristic;   registering in a computer database the prescreened restricted public securities;   providing a system configured to auction the registered prescreened restricted public securities over an electronic network; and   restricting access to the system to authorized users.   
     
     
         44 . The method of  claim 43 , wherein restricting access to the system to authorized users comprises only allowing accredited investors or accredited companies to place securities or place trades. 
     
     
         45 . The method of  claim 44 , wherein only allowing accredited investors or accredited companies to place securities or place trades comprises registering the accredited investors or accredited companies with a system operator. 
     
     
         46 . The method of  claim 43 , wherein the electronic network is the Internet.