SecondMarket traded on SecondMarket, as part of its first internal liquidity program. “It was a resounding success” says Barry Silbert, founder and CEO with the company. The secondary transaction was led by The Social + Capital Partnership, a new fund created by former Facebook executive Chamath Palihapitiya. SecondMarket was the fund’s first investment. Additional investors include A Grade Investments, Yuri Milner, Stephan Paternot, Shakil Khan, Ian Osborne, Frank Lavin, Dan Schwartz and others.
SecondMarket shareholders, including current employees, sold approximately $13 million in common stock at a valuation of about $160 million in what the company anticipates will be an annual liquidity event.
Barry Silbert (founder and CEO, SecondMarket): Market observers believe companies should have a market cap of $1 billion+ before contemplating an IPO. However, $200M companies – not unlike SecondMarket – want to provide interim liquidity to their shareholders.