Private market exchange ADDX has raised US$58 million in a pre-Series B funding round that saw several financial institutions come on board as new shareholders, including SET Venture Holding, a subsidiary of the Stock Exchange of Thailand, UOB, Hamilton Lane, and Krungsri Finnovate, the corporate venture capital arm of Krungsri.
The latest investment brings total funds raised by ADDX to around US$120 million since its inception in 2017. New investors join existing shareholders on the ADDX cap table, such as Singapore Exchange, Temasek-owned Heliconia Capital, Development Bank of Japan, Japan Investment Corporation – Venture Growth Investments, Tokai Tokyo Financial Holdings, Kiatnakin Phatra Financial Group and Hanwha Asset Management.
The funds will allow ADDX to scale its operations. The new shareholders will also partner with the company on specific projects that will help the exchange expand into new business areas, geographies or market segments.
Several strategic initiatives by the company will also benefit from the fresh capital, including the recent launch of private market services for wealth managers, ongoing efforts to bring on board world-class general partners as issuers, and product innovations that will bridge the worlds of traditional finance and digital finance.
The company, which is regulated by the Monetary Authority of Singapore as a digital securities exchange, uses blockchain and smart contract technology to tokenize and fractionalize private market opportunities – such as pre-IPO equity, private equity and hedge funds, bonds – reducing the minimum investment sizes from US$1 million to US$10,000. The resulting efficiencies aim to help bring the benefits of private market investing to individuals, while lowering the cost and fundraising threshold for issuers.
“ADDX is on a mission to democratize the private markets,” says Oi-Yee Choo, CEO of ADDX. “The new shareholders aren’t just capital partners, but strategic partners too. They have much to contribute in the form of expertise, ideas, market experience and business networks. This rre-Series B round sets ADDX up strongly for long-term success.”