Dream Exchange is on track to become the first-ever minority-owned stock exchange in the U.S. after Cadiz Capital Holding LLC agreed to become a majority owner in the company.
The idea for the exchange came from founder Joe Cecala's decades of experience working in capital markets, which he said too often ignore the little guy.
"The market hunts for liquidity, and in the smaller market, especially over the last 10 years, we're just devoid of transactions," Cecala told Cheddar. "So I started designing a stock exchange that could really service those small-cap transactions."
He noted that companies in the $50 million range used to make up a much larger segment of the equities market. Dream Exchange aims to give those companies a platform.
Bill Ellison, chairman of Cadiz Capital Holding LLC, said that for too long minority-owned companies have struggled to get access to capital. He also emphasized the need to give these companies a venue to go public if they so choose.
"The owners of a company will make that decision on whether or not they want to go public, but the opportunity should be there," he said.
The timing of the launch amid a national backlash against systemic racism, which has taken aim at everything from policing to public statues, was accidental, Cecala said. But nonetheless, he believes it's an opportune time to make equity markets more inclusive.
"You can see there's a tremendously underserved segment of our society, and I think those economic effects are spilling over into the fact that not everyone has an equal stake in the country," Cecala said.
COVID-19 is leaving its imprint on the new exchange as well. A number of companies that have expressed interest in being listed are producing medical supplies and devices.
"There seems to be a lot of activity surrounding [coronavirus], not just biopharma, but all of the mechanics, the ventilators, the masks," he said.
Clean energy, cybersecurity, and information technology are some other areas where there has been heightened interest, he added.
"We're not licensed yet, but we're accumulating companies for the launch," Cecala said
James Gallagher, CEO and Co-Founder of GreenLite, discusses the challenges of rebuilding the fire-affected LA area and how permitting complicates the process.
Super Bowl Champion, Julian Edelman, talks Chiefs' conspiracies, his fave TSwift song and his bet for Super Bowl LIX. Plus, the best time for a bathroom break.
Ron Hammond, Sr. Director of Government Relations at the Blockchain Association, breaks down Trump’s plan to strengthen U.S. leadership in financial technology.
BiggerPockets Money podcast is now available on Cheddar Wednesdays at 10am ET! Mindy Jensen shares how her podcast is helping people gain financial freedom.
The social video platform's future remains in doubt, as players scramble to profit from the chaos. Plus: Big oil gets bigger, DOGE downsizes, and tariffs!
Ty Young, CEO of Ty J. Young Wealth Management, joins Cheddar to discuss Trump's moves as he returns to Washington D.C. and how it may affect the U.S. economy.
Starbucks’ decision to restrict its restrooms to paying customers has flushed out a wider problem: a patchwork of restroom use policies that varies by state and city. Starbucks announced last week a new code of conduct that says people need to make a purchase if they want to hang out or use the restroom. The coffee chain's policy change for bathroom privileges has left Americans confused and divided over who gets to go and when. The American Restroom Association, a public toilet advocacy group, was among the critics. Rules about restroom access in restaurants vary by state, city and county. The National Retail Federation says private businesses have a right to limit restroom use.
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
