Clear Street is offering accredited investors a chance to buy shares in Databricks before the company goes public. The AI data platform recently secured a valuation of $188 billion, making it one of the most valuable private firms worldwide.
This funding round, led by Coatue Management, is expected to raise around $3 billion. It marks a striking leap from Databricks' previous $134 billion valuation, adding roughly $54 billion in value within weeks. Despite being seen as ready for an IPO, Databricks might postpone going public until 2027, leaving private market platforms like Clear Street to provide alternative investment routes.
The Rise of Clear Street
Since 2018, Clear Street has been growing quietly as a cloud-native brokerage aiming to reshape access to the private market. After raising capital that valued the company at $12 billion earlier this year, it filed for a US IPO but later withdrew due to unfavorable market conditions. Now, it plans to open a secondary market platform offering shares from over 30 private companies by the end of 2026, starting with Databricks.
For investors, this signals a new phase in private market trading. Unlike long-established platforms such as Forge Global or EquityZen, Clear Street's $12 billion backing hints at a push to mainstream these opportunities. Yet the high valuation of Databricks, representing about a 37x revenue multiple on its $5 billion annual run rate, introduces risks. A delayed IPO combined with volatile markets might leave shareholders stuck with illiquid shares and uncertain exit options.
This material is for informational purposes and does not constitute financial advice.
