AAA Zanbato zooms towards funding

Zanbato zooms towards funding

Zanbato, a US-based online platform provider for the trading of venture capital-backed private shares, has received a strategic investment from financial services firm JP Morgan.

A regulatory filing indicated Zanbato had raised $20.5m of equity financing, but it is unclear whether JP Morgan provided the full amount or if other investors participated.

Zanbato operates ZX, an online inter-broker platform that enables broker-dealers and institutional investors to conduct secondary transactions in private companies.

Through the platform, customers also have access to data and insights on security availability, price movement and market trends. The company was co-founded by Ryan Orr in 2010 while he was an associate consulting professor at Stanford University.

Nico Sand, chief executive at Zanbato, said: “We are pleased that JP Morgan shares our commitment to creating deeper and more reliable private markets.

“We look forward to continuing to build out ZX, further enabling our members to more effectively serve their clients.”

Zanbato raised $8m for its series B round led by Sway Ventures’ Accelerate-IT Ventures in 2015, when Formation 8 as well as unnamed family offices and venture capitalists also took part. An amended regulatory filing later that same year indicates the round closed at $15m.

Zanbato also raised $3m in its first institutional funding round from Alberta Investment Management Corp and undisclosed individual investors in 2012. A regulatory filing the same year indicated Zanbato secured $200,000 in equity and debt financing, but it is unclear how the two investments relate.

Property developer LeFrak, Webb Investment Network and Blumberg Capital also list Zanbato in their respective portfolios.