Technology leaders are backing a new U.S. stock exchange that gives more voting power to shareholders who hold their stock longer, and offers a new incentive for privately held tech giants to go public, The Wall Street Journal reported.
The Long-Term Stock Exchange is funded by several venture capital firms, including Peter Thiel's Founders Fund, Andreessen Horowitz, SV Angel and Greylock Partners. Venture capitalist Marc Andreessen is the co-founder, and LinkedIn co-founder Reid Hoffman is investing in the project through Greylock Partners, where he is a partner.
The exchange is also backed by individual investors, including former Twitter Inc. CEO Dick Costolo, AOL co-founder Steve Case and Groupon Inc. founder Andrew Mason. The firm has reportedly raised $19 million from about 70 investors.
Companies listed on the exchange would be required to adopt a "tenure voting" system and other policies in areas ranging from executive pay to disclosure to board oversight. Though the listed companies will publish quarterly results, as required by SEC, it would not be mandatory for them to disclose quarterly earnings guidance.
The exchange plans to file an application with the SEC by the end of 2017 to become a stock exchange.