The average U.S. state has 750 venture-backed startups, yet VCs are starved of liquidity to fund continued growth. A staggering $455B has been invested outside California, New York, and Massachusetts in the past five years — creating 3.3 million jobs — yet the system fails to recycle that capital efficiently. The current VC distribution yield sits at a historic low of ~6.5%, while 1,300+ VC-backed companies valued above $500M are waiting for an exit that may never come under the current structure.
Capital deployed in the past 5 years beyond CA, NY, and MA.
By venture-backed startups outside the traditional tech hubs.
VC-backed firms valued above $500M with no clear path to liquidity.
At historic lows, starving the ecosystem of redeployable capital.
77% of capital goes to 3 hubs. The "Next 25" states are starved of ~$22B in redeployable capital, costing the broader economy an estimated 109,000 fewer jobs. States like Texas (4,383 startups), Florida (3,122), and Colorado (2,089) demonstrate thriving innovation ecosystems that deserve better access to capital markets. Even smaller states show remarkable entrepreneurial activity — Montana, Vermont, and Wyoming collectively support over 485 venture-backed companies. The Tennessee gap alone represents $0.4B in lost liquidity.
As IPOs have declined and capital has concentrated, the bridge to public markets has collapsed for emerging companies. Only 48 venture-backed IPOs occurred in 2025 — despite a backlog so severe it would take 30+ years to clear at current rates. The system is failing founders, investors, and communities alike. Three structural barriers are to blame:
Traditional national IPOs require $3–5M+ in legal, underwriting, and compliance expenses — a barrier most growth-stage companies simply cannot clear.
Overwhelming SEC review processes take 12–18 months, creating a gauntlet of compliance hurdles that drain resources and momentum from growing companies.
Secondary markets suffer from severe fragmentation and poor price discovery, leaving investors and founders with no reliable path to liquidity outside of a full national IPO.
DeXnet's State IPO (SIPO) model is built on a simple but powerful insight: the infrastructure to democratize public markets already exists at the state level. By leveraging existing state securities regulation, connecting proven fintech infrastructure, and partnering with intrastate venture capital ecosystems, DeXnet creates a streamlined, cost-effective pathway to public capital — without the burden of a traditional national IPO.
Existing state securities regulation and frameworks — familiar, proven, and far less costly than federal pathways.
Proven fintech infrastructure solutions that enable real-time trading, tokenized securities, and seamless compliance at scale.
Intrastate venture capital ecosystems — aligning local investors, founders, and institutions around shared economic opportunity.
TennSE — America's first blockchain-native State Financial Market Infrastructure. deXnet partners with VC firms to launch SIPOs via TennSE, offering a trading venue for any in-state investor, blockchain-native tokenized digital asset securities (DAS), and real-time trading via a proprietary app. TennSE promotes local liquidity with freely tradable intrastate securities, magnifies institutional investment rounds by 2x–3x, and serves as a "minor league" on-ramp for eventual national IPOs.
deXnet's model creates a self-reinforcing flywheel that aligns the interests of issuers, investors, and state and local stakeholders — supported by an ecosystem of state agencies, market-makers, VCs, fintech providers, and intrastate investors. As each participant benefits, the network grows stronger and more valuable for everyone involved.
deXnet occupies a unique and defensible strategic position: the only exchange combining high tradability with low regulatory and issuance frictions. National exchanges offer high liquidity but impose enormous barriers. Equity crowdfunding offers easier access but poor secondary liquidity. Private equity is illiquid with long lock-ups and high minimums. deXnet's State Financial Market Infrastructure fills the white space — delivering exchange-grade tradability through a streamlined state-level regulatory framework.
Unlocking the private markets with a national network of state stock exchanges — bringing liquidity, opportunity, and economic growth to every corner of America.