Of the private companies trading on secondary markets, how much (percentage) of those companies’ stock is available through the secondary market?
The secondary market for private company stock is brand new, and so nascent that it is virtually nonexistent.
For a very brief time, when Facebook, LinkedIn, Groupon and Zynga were still private, there was a quick flurry of private secondary sales through platforms like SecondMarket and SharesPost. But there was much, much, much more smoke than fire, and I would be extremely surprised if even 1% of those four companies changed hands in the secondary market.
Down the road I believe that we will begin to see a viable private secondary market emerge, but that is unquestionably years away.
*original post can be found on Quora @ http://www.quora.com/David-S-Rose/answers *
Written by David S. Rose
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