The New York Stock Exchange, NYSE said it is teeming with the Israeli Ministry of Finance to set up a secondary stock exchange for the country’s booming tech firms.
Shai Babad, director-general of the ministry at the country’s Ministry of Finance told Reuters that: “What we agreed on is how we can make it happen,” he said. “There are a lot of accessible investors looking to pursue the high tech sector in Israel.”
“High tech companies will be able to raise money, not just abroad and from foreign investors, but they can have a stock exchange to raise money with relatively low regulations and bureaucratic requirements,” he said.
“It will be just as easy for high tech companies to raise money on a secondary exchange as it is with venture capital.
“The advantage for the NYSE is that they already get to target Israeli companies at the initial stage, and when those companies grow up, then they can go to a listing,” he added.
The Tel-Aviv Stock Exchange has not been very receptive to tech firms in the State of Israel because of its strict listing rules for companies. The move is to help tech startups to diversify their source of funding away from private venture sources.