ExchangeP wants to change the way you trade companies. Sure, you can do it with real money for public companies, but ExchangeP wants to let you do that with private companies.
The startup presented today during the Collaboration session of TechCrunch50. You can watch the video of its presentation here.
By default, each company will get 1 million outstanding shares and once users sign up, they will have $100,000 to spend on their investments.
Once the company is added to the listing, it can be traded in the market until a liquidity event — it enters the dead pool, moves to an IPO, or is acquired — occurs. It’s still traded for 30 days after that, at which point it will be removed from the exchange.
Right now, ExchangeP has 75 company listings and it said that it will add more as time goes by. Until then, users can sign up and the best performers each month will win cash prizes in an attempt to coax more people to the service and give them the incentive they need to help the market dictate the real value of the companies.
Expert Panelists
Roleof Botha:
“I think the key question is can you actually have cash at work here? From a consumer point of view, you can take advantage of greed and if you can make real money, people will want to use it. Secondly, people need real money to make it work for realistic valuations.”
Mark Cuban:
“Interesting idea, but wrong business. It never gets big enough for real money and a bunch of people will come in and you’ll make it bigger. Rather than being the business of supplying the tool for one niche, why not become a tool-set that provides exchange for anything? You can leverage what you have instead of hoping some of the things Roleof mentions will come true.”
Answer: “We thought this would be a good place to start because we don’t want to spill the beans on future plans.”
Don Dodge:
“You’re headed in the right direction if you pay money and can make money. I assume your business model is advertising, right?”
Answer: “Early stage targets are to collect eyeballs and generate advertising opportunities. This is a great niche, but it is a niche, and we can make premium fee for what people think about the data collected.”
Don Dodge:
“I was involved in techstocks.com 10 or 15 years ago on public companies and the business model was free to read, but pay to join and comment on other stocks.”
This sounds great (and fun) but isnt it just a knock off of urladex.com?
I guess the better way to put it is this: isnt this very similar to urladex.com?
Pretty much I think..but either one of them won’t really succeed with traders. Go check out http://equedia.com/ and sign up for their private beta launch
TradeVibes also has a similar product, Startup Exchange:
http://www.trad...es.com/exchange
Yes – let’s trade fake currency in a bunch of crappy companies on the basis of a domain name, address, a list of investors perhaps and website traffic. Isn’t this very 1999? Oh, but wait, you can win a gift certificate to Pizzeria Unos if you’re guessing skills are good.
There is no info about these companies that would make trading them interesting or useful. I don’t understand what problem ExchangeP is solving and see no revenue model. Advertising model, eh? Right – unfortunately, the 50 unemployed TechCrunch readers sitting at their computers in their underwear are not highly coveted ‘eyeballs’.
I’m guessing they think VCs or investors would like this info down the road, but guess again. As for the wisdom of crowds cr^p that they may point to, just more buzzwords. The crowd is not that wise – witness dot com implosion.
I can’t believe this company made it into the TC50. By the fact that I’m one of the only ones commenting on this (yes I know I’m lame) shows how uninteresting and pathetic this concept really is.
Just because it’s cheaper to put up a website, it seems we get to see more and more garbage every day.
BTW, the TradeVibes idea is just as lame as is urladex.com.
a similar one http://moneybhai.com
I can’t believe this. I am an investor and I have no idea how this will succeed. I agree with Roelof and Mark. You guys want a real site? Go check out http://www.equedia.com/ and sign up for their private beta set to launch in about a week or so…I met the CEO at a small venue a few weeks back and saw a preview of the new site for ALL of those in the stock market – I am telling you guys, I don’t evangelise much, but as a trader, this may be the best new thing in our market.
Hey, ever consider trading on the forex market? Check this out.
http://www.fforexautopilot.com
Hey..ever consider trading on the forex market? Check this out.
http://www.fforexautopilot.com
Wow. can someone say SPAM? Bill, jack..you gotta be kidding me…
I sure can say spam, and aside from the double post under two different names, you seem to be spamming as well (imo).
Pot meet kettle.
http://www.atel...ivate-companies