Secondary Market for Buying and Selling Private Company Stock and Employee Stock Options

Private Company Stock

Market Description

SecondMarket's Private Company Market facilitates transactions in both debt and equity securities in a wide variety of dynamic, high growth private companies. By some accounts, up to $200 billion has been invested in private companies by venture capital funds and angel investors over the past 5 years. The lack of a functioning IPO market and minimal M&A activity have left shareholders with few options for liquidity in these investments. Moreover, systemic problems facing companies wanting to go public, including lack of research sponsorship, requirements stemming from Sarbanes Oxley, etc., compound the problem of an IPO as an exit strategy. For those companies seeking to stay private, administrative burdens surrounding shareholder management and communication add to the pressing need for liquidity.

Through SecondMarket, private companies have the ability to opt-in to an organized and controlled private marketplace environment. This platform enables early investors and employee shareholders of private companies to exit their investments in cooperation with company management. SecondMarket affords companies with a set of robust tools, allowing streamlined shareholder communication and access to SecondMarket's market participants.

Feb 4 2010

SpiderCloud Wireless Raises $25 Million — www.pehub.com

Santa Clara, California-based SpiderCloud Wireless has raised a Series B round of $25 million in funding
The investors for the $25 million round included Opus Capital, Shasta Ventures, Charles River Ventures, and Matrix Partners
Charles River and Matrix were repeat investors having previously invested in the Enterprise Radio Access Network company's Series A round

Jan 28 2010

The Receivables Exchange Receives Another $17M From Bain Capital Ventures — www.techcrunch.com

Online marketplace The Receivables Exchange received $17 million in funding from Bain Capital Ventures
The company, which facilitates trading in accounts receivables, started its platform in 2008
The Series C round brings the total investment in the company to almost $30 million

Jan 27 2010

Square Announces Its Full List Of Angels With Some Surprises — www.techcrunch.com

iPhone mobile payment company Square has currently received angel funding from prominent individuals associated with companies including Google, FourSquare, Digg, and Twitter
The company has currently raised $10 million in total funding
Though it has yet to become available to the public, Square is estimated to be valued at $40