Texas Stock Exchange raises $160M to challenge NYSE and Nasdaq
What's the deal? TXSE Group Inc.Dealroom has a profile for this one. Try Dealroom →, the parent of the Texas Stock ExchangeDealroom has a profile for this one. Try Dealroom →, has raised $155 million in a third funding round as it competes with the New York Stock ExchangeDealroom has a profile for this one. Try Dealroom → and the NasdaqDealroom has a profile for this one. Try Dealroom → for equities listings. Existing shareholders provided about three-quarters of the new money, with the rest from new backers the Dallas-based company did not name.
Why now? The raise follows the exchange's first listings. Total funding now stands at $430 million.
What's the endgame? TXSE is positioning itself as a rival venue for primary listings, an area long dominated by the two incumbent US exchanges. "Real competition for primary listings is here, and it is here to stay," said James Lee, TXSE's founder and chief executive officer.
By the numbers: The $155 million round ranks in the 95th percentile among all-time late-stage venture rounds for US fintech companies, based on a sample of 1,006 comparable deals.
The signal: Backers are betting real money that the decades-old duopoly in US listings can be contested. A round at the top of its fintech peer group, drawn largely from returning investors, signals conviction that TXSE's early listings mark a viable start rather than a one-off.
Read more: news.bloomberglaw.com
Image credit: Texas Stock Exchange
