Of the private companies trading on secondary markets, how much of those companies’ stock is available through the secondary market?
Posted by David S. Rose on September 7th, 2014
On average…none.
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
David S. Rose
Founder and CEO,Gust
David has been described as "the Father of Angel Investing in New York" by Crain's New York Business, & a "world conquering entrepreneur" by BusinessWeek. He is a serial entrepreneur & Inc 500 CEO who chairs New York Angels, one of the most active angel investment groups. David is also CEO of Gust.
Gust is the world’s largest platform and community
for entrepreneurs and early stage investors.
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for entrepreneurs and
early stage investors.
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