AxialMarket has raised $6.5 million in a round led by RedPoint Ventures, according to an SEC filing discovered by BetaBeat. The company confirmed to us that it’s raised a Series A.AxialMarket is basically Match.com for companies that want to buy each other or do other kinds of deals.
The Internet is disrupting most markets but the ones that are hardest to disrupt are the ones that are most based on personal relationships. And yet, that’s what AxialMarket wants to do by building an online network for corporate-finance transactions.
The company is based in New York and was founded by Peter Lehrman. If the name sounds familiar, it should: he was on the founding team of Gerson Lehrman Group, the huge expert network/research firm. (Expert networks connect investors willing to pay for information that might help them make investments with consultants, company executives, and others who have that knowledge.)
Lehrman told us that when he was at GLG, the company got an investment, and after the investment was done, plenty of people they would have been interested in talking to reached out to him and said “Hey, why didn’t you get in touch with us for that investment?” His reaction was “Why didn’t YOU get in touch with us?”
realising that the market was inefficient, he decided to go after the opportunity to fix it.
AxialMarket doesn’t want to replace investment bankers but rather make their job easier by helping them find as many opportunities, increase their dealflow and centralize their deal process. It’s never going to be eBay, and you’re never going to conduct a transaction in the eight figures or larger purely online: You’re going to want to meet and be assisted by people you trust.
AxialMarket’s big competitor is CapLinked, which is based in Los Angeles and backed by Peter Thiel and other members of the PayPal Mafia.
These companies are on to something big because they’re part of a broader phenomenon we’ve mentioned, which is that the way companies are getting financed is completely changing →