NYIAX
Somerset, NJ, United States
Industry: Business/Productivity Software
Region: US 🇺🇸
Year Founded: 2012
IPO Date: 01-06-2022
Market Cap: $78.32 million
Number of Employees: Approx. 29
Revenue: $1.43 million (2022)
Net Income: -$12.35 million (2022)
Nyiax Inc.
NYIAX IPO
NYIAX, Inc. (ticker: NYX) went public on the NASDAQ exchange on February 24, 2023. The company offered its shares at an expected price range between $4.00 and $6.00 per share.
An insider lock-up period was set for 180 days, ending on August 23, 2023. The IPO marked a significant milestone in the company’s journey, providing the necessary capital and public exposure to further their growth strategies and potentially accelerate their business objectives.
Company Overview & History
NYIAX is a financial and advertising technology company that was founded in 2012 by Carolina Abenante, Mark Grinbaum, and Graham Mosley.
The founders designed NYIAX’s business model with the intent to bring financial platform technology and financial rigor to the advertising industry.
The company set out to revolutionize the advertising sector by introducing cutting-edge technology and new methodologies to a field that was laden with manual and outdated processes.
NYIAX’s platform is built on the Nasdaq financial framework, which provides a strong and reliable foundation for their operations.
The company uses smart contracts and blockchain technology as its core ledger, facilitating contract formation, compliance, and reconciliation. This usage of financial technology automates many processes in the advertising industry, providing efficiency and accuracy where it was once lacking.
The company has a grand vision of transforming the methodology of how markets are developed within the advertising ecosystem.
Its mission is to connect buyers and sellers of media through trusted, secure, and efficient transactions. In this way, NYIAX aims to foster a more streamlined and effective market in the advertising industry.
A joint patent held by both NYIAX and Nasdaq Technology AB, a wholly owned subsidiary of Nasdaq, Inc., protects the technology platform.
This patented technology has opened up current and future opportunities in the media and advertising industries, positioning NYIAX for potential growth and innovation.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2021 | 0.59 | -12.25 | -8.59 | -7.03 |
| 2020 | 0.05 | -6.17 | -5.35 | -4.75 |
Business Model
NYIAX’s business model is centered around bringing financial platform technology and financial rigor to the advertising industry.
The company utilizes a robust platform built on the Nasdaq financial framework and employs smart contracts and blockchain technology as its core ledger.
This innovative approach enables contract formation, compliance, and reconciliation in the advertising sector.
The company’s platform automates many manual and outdated processes in the advertising industry.
By using advanced financial technology, NYIAX is able to streamline these procedures, offering increased efficiency and accuracy.
The company’s mission is to connect buyers and sellers of media through trusted, secure, and efficient transactions, thereby fostering a more productive market in the advertising industry.
Furthermore, NYIAX’s platform is protected through a joint patent held by both NYIAX and Nasdaq Technology AB. This patented technology opens up opportunities in the media and advertising industries, both currently and in the future.
The company’s business model is thus one that not only addresses the present needs of the advertising industry but also anticipates its future directions and challenges.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 78.32 |
Risk Factors
NYIAX, as a company that operates in the ad tech and fintech industries, faces several risk factors. One major risk is that NYIAX would be considered a micro-capitalization stock, which is subject significantly to the whims of the market.
This means that changes in market sentiment could dramatically impact the company’s stock price, potentially affecting its financial stability. Moreover, if the company were to fall out of favor, a lack of volume may impede profitability.
In addition, global geopolitical events have the potential to impact NYIAX. Specifically, the company has been affected by Russia’s invasion of Ukraine and the subsequent U.S.-led sanctions on Russia.
These sanctions limit NYIAX’s ability to transact with its developer, which has employees in Russia. This can potentially disrupt the company’s operations and negatively impact its financial performance
Market Opportunity
The market opportunity for NYIAX is significant given the growth of the global digital advertising market. According to a 2021 market research report by eMarketer, the global market for digital advertising was projected to reach $646 billion by the end of 20242.
As a platform that connects buyers and sellers of media, NYIAX is well-positioned to capitalize on this growth.
The company’s unique selling proposition of enabling trusted, secure, and efficient transactions in the media buying and selling process could potentially attract a substantial portion of this market.
Competitors
- Cardlytics
- Huddle
- Firefly
- AcuityAds
Key/Fun Company Facts
- NYIAX’s concept was born from the insight of co-founder Carolina Abenante, who envisioned an advertising marketplace that offered the same level of transparency as NASDAQ’s electronic trading platforms.
- The founders of NYIAX initially took their idea to ISE and then to NASDAQ, which expressed interest in using their technology in other markets. This led to the development of joint patents between NYIAX and NASDAQ, one of which was received in March 2020.
- NYIAX moved from its design and testing phase to making the platform available to customers in 2019. The platform is appreciated by customers for its contract management, transparency, and blockchain security.
- NYIAX experienced over 350% growth over the past year as automation took hold a couple of months after the COVID-19 pandemic started, leading to exponential growth for the company. The number of agencies wanting to work with NYIAX also increased significantly during this period-.
- Carolina Abenante, one of the co-founders, has a diverse background, including experience in corporate law, corporate development, M&A, and digital fields since 1998. She has an MBA and a law degree and has worked in telecom and corporate environments before co-founding NYIAX.
- According to Abenante, NYIAX isn’t trying to break the paradigm but rather enhance it. The company aims to be a standard for contract management in advertising and believes there’s still a lot they haven’t explored with NYIAX.