Clear Street Debuts Pre-IPO Platform, Lists AI Leader Databricks

Clear Street, the prime brokerage startup that recently shelved plans for its own IPO, is now charting a course to offer investors access to some of Silicon Valley’s most coveted private companies before they hit the public markets. The firm is reportedly on the cusp of unveiling a new platform designed to enable accredited investors to acquire stakes in late-stage private companies, with AI software giant Databricks, recently valued at a staggering $188 billion, slated to be among the initial offerings.

“Our objective is to streamline the investment process and broaden access to a wider array of financial products,” stated Uri Cohen, CEO and co-founder of Clear Street, in a recent interview. “A significant portion of wealth creation is now occurring within private markets, and there’s a growing appetite among retail and smaller-scale investors to participate in this growth.”

The trend of startups remaining private for extended periods is increasingly common, meaning much of their value accretion now happens well before their initial public offerings. This dynamic has spurred a surge in demand from affluent investors eager to gain exposure to high-profile companies like Databricks, Anthropic, and OpenAI before they become publicly traded entities. In a parallel development, financial giants are also stepping up their private market offerings. Last week, reports indicated that Goldman Sachs has established a new platform to enhance its services for high-net-worth clients and family offices seeking direct investments in rapidly expanding private enterprises.

While Clear Street’s narrative centers on democratizing access to high-growth technology investments, the intricate structure of these transactions underscores a complex reality in the current private markets landscape: Databricks itself is not directly involved in these secondary transactions. Instead of purchasing newly issued shares from Databricks, investors will acquire an interest in a special purpose vehicle (SPV). This SPV, in turn, holds a stake in a third-party fund that ultimately owns the shares of the target company.

From Databricks’ perspective, the registered shareholder of record remains the external fund, where the shares are legally held. This structure is crucial, particularly in light of past actions by AI startups such as Anthropic, which earlier this year moved to nullify unauthorized secondary transfers and void indirect share sales that circumvented established corporate transfer protocols. Clear Street’s CEO, Uri Cohen, however, emphasized the firm’s commitment to these deals, asserting, “If there is a risk, we are taking it.” A spokesperson for Databricks has indicated that the startup has no existing engagement or relationship with Clear Street.

Clear Street anticipates featuring as many as 30 startups on its platform by the close of the year, predominantly technology firms valued between $5 billion and $20 billion, and are approximately six to twenty-four months away from a potential IPO. To bolster this initiative, the firm is launching dedicated private company equity research, headed by analyst Owen Lau, a move Cohen described as an effort to inject public-market-style transparency into traditionally opaque private markets. This expansion arrives at a critical juncture for Clear Street itself.

The firm, which was last valued at nearly $12 billion in a private funding round earlier this year, made the decision in February to postpone its own IPO plans amidst prevailing market volatility that adversely affected valuations for brokerage and fintech companies. Despite placing its public listing on hold, Clear Street is currently cash-flow positive and has fortified its liquidity with a $400 million investment-grade bond offering. This financial maneuver provides the necessary runway to develop its private market infrastructure, according to Cohen.

“We are in a strong financial position, which allowed us to defer the IPO for more opportune timing,” Cohen explained. “We are certainly looking towards a listing in 2027, contingent upon market conditions.”