Long-Term Stock Exchange
| Company type | Subsidiary |
|---|---|
| Industry | Securities exchange |
| Founded | 2012 |
| Headquarters | New York City , United States |
Key people | Bill Harts (CEO) |
Number of employees | 39 (2020) |
| Parent | LTSE Group |
The Long-Term Stock Exchange (LTSE) is a nationally recognized securities exchange based in New York City, United States. Established in 2012, LTSE’s mission centers on encouraging long-range corporate governance and investment strategies. Firms listed on LTSE are required to uphold governance principles that emphasize enduring business success and active stakeholder involvement. The exchange has attracted financial support from leading venture capital entities such as Andreessen Horowitz, Founders Fund, and Greylock Partners, along with individual investors. LTSE functions as a subsidiary under the LTSE Group umbrella.
History
The concept behind the Long-Term Stock Exchange (LTSE) was initially proposed by entrepreneur Eric Ries in his 2011 publication The Lean Startup. Ries transformed this idea into a tangible initiative, assembling a team of roughly 20 employees and advisors. Early-stage funding reached nearly $19 million, contributed by about 70 investors including venture capital firms like Andreessen Horowitz, Founders Fund, and Greylock Partners, as well as individual backers such as Reid Hoffman, Marc Andreessen, and Steve Case. Amy Butte, who formerly served as CFO of the New York Stock Exchange, provided advisory support. The team also comprised former NYSE personnel and officials from the U.S. Treasury Department. Although initially regarded as impractical, LTSE set out to transform capital markets by emphasizing long-term value creation.
Prior to its independent launch, LTSE collaborated with the IEX Group in 2018 to develop innovative listing standards while preparing its application for SEC approval. In May 2019, the SEC granted LTSE authorization to operate as a national securities exchange, becoming the 14th such entity in the United States. This milestone followed regulatory challenges and necessitated adjustments to LTSE’s original proposals.
Trading commenced in September 2020 after delays caused by the COVID-19 pandemic, with LTSE employing 39 staff members at that time. On opening day, trading volume hit 283,765 shares valued at approximately $117.7 million, despite encountering some order processing delays.
The exchange secured its initial company listings in 2021 when both Twilio and Asana chose to dual-list their shares alongside their primary listings on the New York Stock Exchange. This was followed by ThredUp’s listing in 2023. LTSE’s early approach prioritized dual listings to cultivate market trust before encouraging companies to pursue primary listings.
In June 2022, LTSE raised $100 million from James Walton, grandson of Walmart founder Sam Walton, via The Space Between (TSB) venture fund, which includes former LTSE COO Holly Grant and board advisor Xue Devand. Earlier financing rounds featured investors such as Andreessen Horowitz, Founders Fund, and Collaborative Fund.
Rules and Positioning
LTSE requires companies listed on its platform to align executive and board compensation with long-term corporate performance and stakeholder commitments. Firms must disclose key stakeholder information, environmental impacts, and how governance structures support their long-term objectives. Failure to comply may result in delisting.
The exchange advocates for voting rights that increase with shareholder tenure, granting progressively greater influence the longer shares are held—up to a maximum of tenfold after ten years. This policy has sparked debate; critics caution it could entrench founder dominance, whereas proponents see it as a viable alternative to traditional multi-class share arrangements.
LTSE limits executive bonuses tied to short-term results and bans quarterly earnings guidance disclosures, although quarterly financial reporting remains mandatory under U.S. securities regulations.
In 2025, LTSE submitted a petition to the SEC requesting permission for all U.S.-listed public companies—not just those on its exchange—to report earnings semiannually instead of quarterly. CEO Bill Harts argued that quarterly reporting imposes undue burdens and distracts management from long-term priorities. Prior to filing this petition, LTSE representatives engaged in discussions with SEC officials.
Positioning itself distinctively against major U.S. exchanges, LTSE highlights its commitment to sustainable growth, ESG principles, and corporate responsibility. Additionally, it offers LTSE Equity—a software solution for workforce planning and capitalization table management—claimed to be utilized by approximately 20% of venture-backed startups from seed through Series C funding stages.
References