SoFi Technologies, Inc. and PrimaryBid Technologies Inc. have introduced DSP2.0, a Directed Share Platform aimed at modernizing equity program management for companies seeking to raise capital in the U.S. The platform is designed to streamline processes that have traditionally been manual and costly.
Directed Share Platforms (DSPs) enable companies to allocate shares to specific groups such as employees or customers. However, existing solutions often involve complex manual processing and limited integration with other systems, which can restrict investor participation.
With an anticipated rebound in the Initial Public Offering (IPO) market by 2025, SoFi's new offering aims to bring digital efficiency to equity program management and IPO processes. It allows issuers more flexibility in involving non-institutional investors on a larger scale.
Anthony Noto, CEO of SoFi, stated: "For decades, companies have wanted to offer the opportunity to participate in their IPOs to the employees, partners, customers, and others who helped them grow." He emphasized that traditional DSPs have high costs and requirements that limit their appeal. SoFi's solution offers a fully digital approach with no costs or deposit requirements for participants.
Anand Sambasivan, CEO of PrimaryBid, commented on the importance of targeted investor inclusion: "Companies want intelligent, targeted investor inclusion at IPO to enfranchise those people who matter to their long-term success." He noted that this new solution combines technologies from both firms while ensuring regulatory compliance.
John Tuttle, former Vice Chairman for NYSE Group, highlighted the significance of innovation in engaging stakeholders during public offerings: "It’s vital to see innovation in the ways companies engage stakeholders when going public."
The collaboration between SoFi and PrimaryBid seeks to enhance access for Main Street investors historically excluded from opportunities like IPOs. Both companies are focused on expanding participation through advanced technological solutions.