SecondMarket operates an online marketplace that facilitates private stock transactions, enabling liquidity for pre-IPO and private-company shareholders. In the first three quarters of 2011 the platform handled $435 million in private stock transactions, a 73% increase year-over-year; venture capital firms comprised less than 1% of transactions (0.2% by dollar amount). The company has positioned itself as a leading alternative to public exits, helping companies retain and reward talent and providing startups opportunities to monetize. SecondMarket has raised outside equity in multiple rounds and, per reports, has increased its valuation after the latest financing. The business plans to use new funding to ramp hiring, expand beyond technology companies into new asset classes, and pursue potential acquisitions. It faces competitive pressure as Wall Street firms such as Cantor Fitzgerald and Liquidnet move into pre-IPO trading. SecondMarket runs a secondary market platform that facilitates trading in multiple illiquid asset classes, including private company stock, limited partnership interests, auction‑rate securities, bankruptcy claims, various mortgage‑backed securities, CDOs, warrants/restricted public stock and whole loans. The company is a registered broker‑dealer and a member of FINRA, MSRB and SIPC. It has offices in New York and Silicon Valley and more than 8,000 participants spanning global financial institutions, hedge funds, private equity firms, mutual funds, corporations and accredited investors. In 2009 SecondMarket conducted approximately $2bn in transactions. The newly raised funds will be used to scale the platform and infrastructure in preparation for expansion into Asian markets. Shareholders include FirstMark Capital, New Enterprise Associates (NEA) and SVB Financial Group.

Total raised

$30M

Funding rounds

2

Latest round

Series C

Latest activity

Nov 2011