Monday, November 8, 2010

SecondMarket presentation at startup2startup event #daily notes

SecondMarket is a marketplace, where you can buy and sell shares and
options without going public.

Competitors: Satx, nasdaq portal, sharespost

Why is it great?
-attract employees (they can sell equity/sop earlier)
-Raises capital
-Option not to go public
-Good alternative to get lequidity
-Stay private longer
-Control your destiny (its not private or public)

Model is regulated by SEC
-Only accredited investors are allowed to buy on secondmarket.
-They are not allowed to advertise prices etc
-more then 500 shareholders = public listed
-you can control, who and when buys your stocks
-you choose, who sees your sensitive information
-system is designed for all sizes

- they sign up with the company and work with them

400mio trade volume since 2008
Transaction fee 2-4%

Going public should not like turning on a switch
It should be a slow process

Existing stock market is broken:
You need 10 years to get your money back
No exits, no angels, no innovations
Time to go public from 6 to 9 years
Holding from 5 years 1970 to less then 1 year 2010
No one is pushing smal companies
Public markets are broken

Asset classes @ secondMarket
-Restricted securities
-auction rate securities
-bankruptcy claims
-lp interests
-company stock

Sent from my mobile device

Thomas Hessler
Founder zanox, Globumbus & Angel Investor
Berlin Checkpoint Charlie
Friedrichstraße 50
10117 Berlin

email, skype, msn, Gtalk:
Global mobile: +49 173 6111884
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