SoFi Technologies, a digital financial services firm, and PrimaryBid Technologies, a capital markets fintech leader, announced the launch of DSP2.0 on October 2, 2024. This new Directed Share Platform (DSP) aims to modernize equity program management for U.S. companies raising capital. Traditional DSPs tend to be costly, require manual processing, and limit investor participation, while DSP2.0 offers a fully digital solution. It allows companies to allocate shares to specific groups, such as employees and customers, and scale participation to thousands of non-institutional investors. With an expected rebound in the IPO market in 2025, DSP2.0 offers streamlined processes for IPOs and follow-on offerings, with enhanced flexibility and integrations with marketing tools.
SoFi Technologies, with over 8.8 million members, provides a comprehensive suite of financial products and services, including lending, banking, and investing. Its DSP2.0 platform aims to simplify the IPO process for both issuers and investors by reducing administrative burdens and ensuring regulatory compliance. PrimaryBid, which has facilitated over 350 transactions globally, provides technology that broadens access to capital markets for retail investors. This collaboration enables companies to involve key stakeholders in their capital-raising efforts, shaping offers around strategic needs rather than technical limitations.
