The US government on Friday approved the formation of a new Silicon Valley stock exchange following a regulatory criticism late last year.
Ries, a writer and startup wiz who first ran the idea of exchange in 201
Formerly archivists indicated that a key aspect of the exchange could include scaled voting effect in pace with how long an investor owns an ownership interest. Companies listed on the stock exchange are also required to comply with certain rules, including a prohibition on linking senior salaries to the company's short-term financial performance.
The exchange rate was filed with the Securities and Exchange Commission on November 9, although the fund criticized Commissioner Jackson Jackson Jr., who said the structure of the exchange could provide founders and early investors in startup's excessive power at the expense of other shareholders, according to a Wall Street Journal report.
Asked about Jackson's concerns, Ries told CNBC that he believes the next wave of companies looking to become public "wants to share power to a great extent."
But the exchange claims otherwise and says on its website that a "market that reduces short-term pressures and encourages a steady cycle of innovation and investment in long-term value creation will benefit businesses and their investors."