Fintech broker Clear Street offers investors pre-IPO access to $188 billion AI giant Databricks

📰 source: cnbc_topnews · 💼 business

clear street, the prime brokerage startup that recently shelved its own ipo, is launching a platform for accredited investors to buy interests in late-stage private companies. the first offering will be databricks, the ai software company valued at $188 billion this month. clear street handles asset servicing and risk management internally, allowing it to offer margin loans against pre-ipo holdings, a rarity in private markets. ceo uri cohen said the goal is to remove friction and give more people the ability to invest in more products, noting that "a lot of the wealth creation has been in private markets."

the firm plans to have 30 startups on the platform by yearend, mainly tech firms in the $5-$20 billion valuation range, roughly six months to two years from an ipo. it's also launching private company equity research led by analyst owen lau, bringing public-market-style transparency to opaque private markets. goldman sachs recently created a similar platform for wealthy clients and family offices. clear street, last valued at nearly $12 billion, paused its own ipo in february but raised $400 million in investment-grade bonds. cohen said the company is "in a position of strength" and targeting a 2027 listing depending on market conditions.

why it matters: new retail access to late-stage private companies like databricks could reshape who captures pre-ipo wealth creation, challenging traditional ipo investing.

source: cnbc_topnews
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