U.S. regulators have approved a new stock exchange originally introduced to the Securities and Exchange Commission last year by tech entrepreneur Eric Ries, who raised $19 million from VCs for his project. The new Long-Term Stock Exchange (LTSE) will provide tech firms with options to traditional New York exchanges. The “Silicon Valley-based national securities exchange” is “promoting what it says is a unique approach to governance and voting rights, while reducing short-term pressures on public companies,” reports Reuters.

The LTSE is targeting “hot startups, particularly those that are money-losing and want the luxury of focusing on long-term innovation even while trading in the glare of the public markets.”

Friday’s decision by the SEC followed revisions to address criticisms of the original proposal. Ries’ plan for the LTSE is to reverse the decline in innovation that he believes is a result of the public market’s traditional focus on short-term results.

“A 2017 study by public policy think tank Third Way showed that going public was accompanied by a 40 percent decline in patents within five years after listing, the result of pressure to satisfy analysts’ short-term expectations,” notes Reuters.