Financial Portal Charts Own VC Market

With plans to further increase public equity market transparency, 3DStockCharts.com is in the midst of raising as much as $5 million in a Series B venture capital offering.

Thus far, the New York-based financial Internet portal has garnered $3 million worth of commitments and expects to close out the deal sometime within the next couple of weeks.

“If we are able to do $5 million, then our next move might be to do an IPO,” said John McNamara, chief executive of 3DstockCharts.com. “Some people have told us that we should do another [venture] round for $10 million to $15 million in four to five months, but if we have a second quarter with at least $2 million in revenue we’d probably be a good candidate for an IPO.”

The company, which was developed under the umbrella of ExperTelligence Inc. and spun off this past October, allows anyone with Internet access to watch real-time public stock orders as they are placed with a variety of leading electronic communications networks (ECNs). The Web site simultaneously synthesizes the data into both two-dimensional and three-dimensional charts so as to be more easily understood by less sophisticated investors. The third dimension in this “depth of books” model is time.

“It’s like going to a theater and getting to see how many people are in line in front of you and how many tickets they’re buying rather than just seeing one person go up to the window at a time,” said McNamara.

So far, 3DstockCharts.com covers approximately 40% of the ECN market thanks to its strategic relationships with major market players like The Island ECN and Archipelago. McNamara said that his firm was also in late-stage negotiations with another large ECN and that an agreement between the two should be forthcoming. When completed, that deal would bump 3DstockCharts.com’s ECN coverage up to about 80% of the market.

ExperTelligence currently maintains an 80% equity stake in 3DstockExchange.com, although that number is expected to be reduced to approximately 55% when the $5 million Series B round is completed. The issuer had previously raised $1 million from MH Myerson & Co.