SecondMarkets is shwoing quick growth in turnover as a boom in demand for privately held shares in social media drives investors to its platform in 2011. SecondMarket, an electronic platform for buying and selling alternative investments and shares in private companies, released news this week about activity on its platform in 2011 in a report published on its website. Trades processed increased by 55% in value to USD 558 million over the previous year. Investor interest in using SecondMarket is largely driven by the hope of getting in on winniing companies pre-IPO, according to industry observers, such as Forbes and The Street. In particular, the consumer Internet and social media dominate transactions completed in 2011, as the chart below makes clear.
The chart below shows the seller types that sold private stock on SecondMarket in 2011 were mainly former employees and current employees selling shares granted as part of a compensation package.
One of the most used features on SecondMarket, the company claims, is the ability to “watch” private companies, related news stories and updates. The chart below shows the most popular VC-backed companies in 2011. (Graphics Credit: SecondMarket)