For Institutional Investors

Derivatives for private markets

A marketplace for institutional investors to take long and short private company positions with synthetic derivatives

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133%

Avg. ROI from investing in recent up-IPOs before IPO

* CAGR between last private funding round and IPO lockup expiration for public offerings that traded up at IPO between 2020-2021.

50%

of IPOs traded below IPO price during lockup period in 2021

75%

of private market secondary transactions fail

*based on data collected from private company brokers

Synthetic derivatives allow for reliable and efficient execution of private market investing

Caplight enables institutional investors to transact in the private markets using derivative products commonly used in the public markets like call and put options

Caplight transaction diagram showing a transaction being processed through Caplight with a buyer and seller exchanging a call option and their respective portfolios of hedged risk

Freedom to express specific views based on your risk tolerance

Call Options

Buy Call Options to gain bullish exposure and create leverage by only outlaying option premium or sell Call Options to hedge without selling and generate income on covered positions

Call option diagram showing a chart explaining how it works with a portfolio UI showing a positive return on a company stock but an even larger return on the call option

Put Options

Buy Put Options to insure unrealized returns on owned stock and hedge without selling or sell Put Options to create a bullish position and generate income

Put option diagram showing a chart of how it works and a portfolio UI of a stock trading down but a positive return on a put option

Synthetic Trades

Use Synthetic Trades in long positions to provide synthetic upside exposure when no 'physical' liquidity exists or short positions to hedge owned stock or outright short.

Synthetic trade diagram showing a transaction being processed through Caplight with a buyer and seller exchanging a call option

Institutional-grade features & flexibility

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Full anonymity

Transact with Caplight or a major Investment Bank as your counterparty, preserving your identity in the market.

Cash efficiency icon showing scales in green gradient bacground

Cash Efficiency

Investors can use options to create levered positions with reduced cash outlay

Structure products icon showing diagram of boxes on red gradient background

Structured products

Use multi-leg derivative products to meet specific income, tax optimization or return targets

We serve institutional and sophisticated individual investors

Hedge Funds
Pensions & Endowments
Venture Capital Funds
Sovereign Wealth Funds
Public Equity Funds
Private Banks
Family Offices
Insurance Firms

We're backed by:

Clocktower Technology Ventures logo
Susquehanna Logo
Fin Venture Capital logo
Better Tomorrow Ventures logo

Caplight by the numbers

$1+
Trillion

Total client private assets under management

$2+
Billion

Orders and indications of interest on Caplight

$30
Million

Average Caplight order size

Hear what’s being said about us

“Caplight is developing tech to enable institutional investors to take long and short private company positions via synthetic derivatives, so whether or not they own any actual shares in certain startups, they can bet on their rise or fall."

"It's incredibly hard to hedge a startup portfolio. Caplight will provide a marketplace of options for investors to hedge portfolio risk... This ultimately should increase risk appetite, funneling more money into the early stages."

"An untapped... underserved opportunity, to enable institutional investors like hedge funds, family offices, endowments, pensions... to use options & derivatives... in the private markets"

It’s likely we’ll see a new generation of private market exchanges formed to meet this growing need for liquidity — and that they will begin as software."

"I’m particularly interested in [Caplight’s] plans to enable income to be generated on private company stock by selling out of the money option contracts. One to watch."

“Caplight is developing tech to enable institutional investors to take long and short private company positions via synthetic derivatives, so whether or not they own any actual shares in certain startups, they can bet on their rise or fall."

"It's incredibly hard to hedge a startup portfolio. Caplight will provide a marketplace of options for investors to hedge portfolio risk... This ultimately should increase risk appetite, funneling more money into the early stages."

"An untapped... underserved opportunity, to enable institutional investors like hedge funds, family offices, endowments, pensions... to use options & derivatives... in the private markets"

It’s likely we’ll see a new generation of private market exchanges formed to meet this growing need for liquidity — and that they will begin as software."

"I’m particularly interested in [Caplight’s] plans to enable income to be generated on private company stock by selling out of the money option contracts. One to watch."

Want early access?

Caplight is changing private market investing. The world’s most sophisticated investment managers have already started utilizing our risk management products. Join them and contribute to the evolution of private markets.

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Caplight stocky chart platform UI screenshot