Investing in Xpansiv | How to Buy Pre-IPO Shares

Xpansiv operates a global exchange for environmental commodities. The company’s unique approach combines transparent pricing, helpful market tracking tools, and an all-in-one interface designed to streamline trading. Today, Xpansiv provides critical infrastructure that supports the entire sector.

Since its launch, Xpansiv has garnered strong support from institutional investors. It has also grown to become one of the largest spot exchanges for environmental commodities. All of these factors have helped to drive interest in the company’s shares.

However, Xpansiv is a privately owned and operated company, meaning that its shares cannot be accessed via traditional brokers. Unlike traditional shares, you will need to navigate the secondary markets and qualify for these assets. Here’s what you need to know.

What is Xpansiv?

The history of Xpansiv begins with the launch of CBL in 2015. Ben Stuart and Nathan Rockliff founded this firm to unite the environmental commodities sector. They envisioned their platform becoming the go-to spot for environmental commodities trading.

CBL’s system was well-received. It continued to gain momentum as buyers and sellers of environmental commodities could also access real-time market data on key metrics like renewable energy credits (RECs). Notably, CBL launched the first global carbon offset exchange with electronic interfaces to banks and registries, driving innovation in the market.

The following year, California-based Xpansiv was co-founded by CBL executives alongside Jeff Cohen and Joe Madden. Xpansiv offers direct access to the offsets and renewable energy markets. It enabled companies to access multiple environmental commodity markets, allowing them to better achieve their carbon emissions goals.

Xpansiv’s CBL spot exchange

The Xpansiv CBL spot exchange is the main product offered by the company. It connects directly to  15 carbon, renewable energy, and plastics registries. The platform features an intuitive interface that enables traders to access several crucial tasks, including making bids and offers.

Xpansiv was designed to streamline the entire lifecycle of environmental commodities. Its end-to-end technology supports automation, real-time execution, and T+0 settlement options. Today, it’s seen as a reputable exchange that connects buyers and sellers securely.

Xpansiv Adds Gas Commodities

In 2018, Xpansiv partnered with the Tasmanian Gas Pipeline (TGP) and Carbon Creek & IES. This strategic partnership enabled the company to introduce gas commodities through its TrustWell features. The project broadened the company’s market reach and expanded its client base.

The next year, Xpansiv hit another milestone when it partnered with Solidia to become the first exchange to provide trades of differentiated natural gas based on Digital Feedstock. This maneuver helped introduce low-carbon cement to the economy, furthering green options.

Source – Xpansiv

In 2020, Xpansiv began offering market data directly to clients. This maneuver provided crucial information on the state of the market and individual credits. The same year, the company unveiled its ACE (Aviation Carbon Exchange) in collaboration with IATA, as well as its water commodities trading app, dubbed H2OX.

Strategic Partnerships Drive Growth

Since that time, Xpansiv has continued to drive growth in the global commodities economy. Additionally, the company formed several strategic partnerships, including a collaboration with S&P Global Platts to create the NetGas methane performance benchmark.

Xpansiv continued to make strategic acquisitions as well. Specifically, the company acquired SRECTrade, APX, and launched CBL Core Global Emissions Offset (C-GEO) futures alongside Core Global Emissions contracts. It also partnered with Puro. In 2023, Earth will enable the company to offer more distribution capacity to the carbon removals market.

Today, Xpansiv remains a leader in the industry. It has several collaborations, including with S&P Global and CME Group. It also launched the Xpansiv Connect feature, which operates as an open infrastructure, enabling developers to expand the market safely while improving transparency.

Xpansiv Connect

Xpansiv Connect is the company’s main product. It operates as an all-in-one interface offering real-time transfer initiation and settlement. Users can manage their portfolio, execute trades, and enjoy real-time settlement.

The interface enables you to track all of your positions across multiple registries. You can monitor all of your assets, including spot, forward, and futures, owned or contracted against compliance obligations. This strategy makes it easier to spot trends and make suitable adjustments.

Historical Funding Rounds

Summary of Xpansiv Funding:

Total Funding: Xpansiv secured $712M across 8 funding rounds.

Largest Round: Xpansiv’s largest funding round was secured for $400M on July 6, 2022.

Investors: A total of 21 institutional investors back Xpansiv.

Latest Round: The newest funding round, a Series D round, raised $125 million and was held on January 11, 2023.

Funding Rounds Breakdown:

• 2 Seed
• 3 Early-Stage
• 3 Late-Stage

Key Investors:

Xpansiv secured investment capital from several institutional firms, including Bank of America, Goldman Sachs, Blackstone, CEFC, CommBank, Hartree Partners, Wilson Asset Management, Shaw and Partners, BP Ventures, Oxy, Avista, Energy Innovation Capital, S&P Global, Counterpointe Ventures, and more.

Why Invest in Xpansiv?

There are many reasons why investors continue to seek out Xpansiv shares. For one, the company is currently the largest integrated, open global spot exchange for environmental commodities. This positioning continues to help the company gain exposure and strategic partnerships.

The Xpansiv exchange includes features that help both new and experienced traders. You can conduct efficient execution, discover transparent prices, access helpful information, and utilize post-trade mechanisms. In this way, the platform provides an in-depth analysis of your performance via historical transaction data.

This data includes project-specific credits and benchmark contracts. You can also leverage the easy-to-use interface to create and manage forward sales and purchases, delivery, and invoicing. All of these features make managing your environmental portfolios easier than ever.

Demand for Xpansiv Services is on the Rise

There are more businesses than ever seeking to meet their carbon goals. Consequently, demand for Xpansiv products has increased sharply. Notably, the company surpassed 100,000 solar power systems under management. It also achieved a new milestone when its carbon volume exceeded 120 million metric tons.

Funding and Investor data sourced from Tracxn

1. Pre-IPO Secondary Marketplace

Secondary markets are purpose-built exchanges that connect pre-IPO shareholders with potential investors. These marketplaces can offer these assets because they work closely with employees, early-stage investors, and venture capitalists, who are crucial to the company’s pre-IPO growth.

Investing in pre-IPO shares of Xpansiv could offer strong returns if the company’s valuation increases following its IPO. It’s common for company valuations to increase following an IPO. As such, it makes sense to add pre-IPO shares to your portfolio before the firm announces plans to go public.

Secondary marketplaces have many requirements. Here are some concerns you should be made aware of:

Eligibility: This approach requires you to be an accredited investor, meaning you will have to show at least $1M in liquid assets to qualify for access.

2. Private Equity Firms

Private equity firms gain access to pre-IPO shares during investment rounds. They then offer these shares to high-net-worth accredited investors with a commission. Notably, private equity firms are known to have extra stipulations, including blocking the sale of shares for years in some cases.

3. Employee Equity Sales

Many consider employee equity sales as the best way to acquire pre-IPO shares in Xpansiv. This method of acquiring pre-IPO shares requires you to connect with former employees. It’s common for companies to issue shares as part of an incentive package. Notably, this profit-sharing method has gained popularity, resulting in increased pre-IPO share opportunities for investors.

Private Transactions: To complete a private pre-IPO transaction, you will need to navigate several steps, including creating specific legal agreements, conducting valuations, and establishing any limitations on the asset transfer.

Brokerage: Brokers will take a lot of the confusion out of the pre-IPO process. These professionals can guide you through each step, ensuring full compliance and avoiding common errors untrained professionals make.

There are several risks that you should consider before jumping into the pre-IPO shares investment arena. Here are the top concerns:

Liquidity Risk

If you are looking for an asset that you can sell right away, pre-IPO shares are not the best option.

These investments can include sales and transfer clauses that prevent the transfer of the asset until certain criteria, such as the IPO’s completion, are met. It’s even common for pre-IPO shares to require you to wait years before gaining the ability to sell your assets.

Finding a Broker

If you meet the requirements and are comfortable with the risks, several platforms offer access to pre-IPO opportunities:

Forge Global: One of the largest private stock marketplaces, offering shares in late-stage startups like SpaceX, Stripe, and Databricks. Minimums typically start around $100,000.

EquityZen: A popular platform allowing accredited investors to buy into private companies with minimums as low as $5,000. Past offerings include companies like Discord and UiPath.

Rainmaker Securities: A full-service broker that helps source and negotiate private share sales, including opportunities in companies like OpenAI, Stripe, and Palantir.

Hiive: A newer platform with live bid/ask pricing for hundreds of private companies. Transparent and low-fee, with minimums starting around $25,000.

MicroVentures: Offers pooled access to late-stage companies through special purpose vehicles (SPVs), including past investments in SpaceX and Instacart.

EquityBee: Allows investors to fund employee stock option exercises at startups, often at discounted valuations, with minimums around $10,000.

Augment: A digital-first marketplace showing real-time pricing for pre-IPO shares, targeting tech-savvy investors and offering lower transaction fees.

StartEngine Private: Launched in late 2023, this platform offers accredited investors access to Regulation D offerings in later-stage, venture-backed companies. In its first nine months, it generated $16.5 million in revenue, with average investments of around $32,000

Important: Always perform thorough due diligence and consult a financial advisor before investing in private company shares.

Valuation of Xpansiv and Future IPO

Xpansiv qualified for Unicorn status after it received a $1.2 billion valuation on July 7, 2022. This valuation was the direct result of growing demand for its products and services. As countries around the world seek to hit their Paris Accord goals, Xpansiv’s services continue to grow in value.

Its platform is now considered one of the most widely used global spot exchanges for environmental commodities, with growing competition from over a dozen firms in carbon and renewable energy markets. All of these factors have contributed to Xpansiv remaining the top option in the sector.

Those holding Xpansiv shares seek to capitalize on the company’s rich history and forecasted growth. If Xpansiv can achieve its goal of connecting the environmental commodities economy, it will likely see continued growth and a further increase in share value.

Investing in Xpansiv Pre-IPO Shares | Conclusion

Holding Xpansiv shares presents numerous opportunities in the market. The company continues to make strategic acquisitions that expand its features and offerings, alongside acquiring new high-level clientele, which deepens its exchange liquidity.

Anyone considering investing in Xpansiv should first do additional research into the company and speak with a financial expert. This maneuver will ensure that you fully understand any nuanced restrictions, like no sale periods, and remain within your risk appetite.

Suppose you complete your research and find that you can qualify for Xpansiv pre-IPO shares. In that case, there’s a good chance the company will continue along its successful path, which includes assisting firms in achieving their CO2 emissions goals.

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Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. Pre-IPO shares are typically available only to accredited investors and carry significant risk. Always perform thorough due diligence and consult a financial advisor or legal expert before making investment decisions.