Posts Tagged ‘SecondMarket’
Wednesday, February 13th, 2013
By Allan Maurer
The secondary market for buying and selling equity in private companies has just exploded in recent years. It has increased to $25 billion a year from just $2 billion in 2001, according to Pantheon. Now, even smaller private technology companies are turning to platform’s such as SecondMarket to help attract and keep top talent, among other benefits.
“Secondary markets emergence and growth is a result of a sea change in the private markets,” says Matt Shapiro, director of issuer engagement, East Coast and Midwest, for SecondMarket. Among other things, it now takes most companies nine years from their conception to being able to mount an initial public offering of stock and go public.
Going public is not always as attractive an exit, either. “Look at the conditions in the public markets,” Shapiro suggests. “Public companies have to deal with the costs of Sarbanes Oxley, a sometimes fickle investor base, and minimal coverage from analysts. That’s why the number of IPOs have declined.”
Appearing at Southeast Venture Conference
Shapiro, who worked for seed stage fund LaunchCapital prior to joining SecondMarket, will talk about the benefits of using SecondMarket’s platform at the upcoming Seventh Annual Southeast Venture Conference in Charlotte, NC, March 13-14.
SEVC just named the first round of innovative companies that will present at the event.
“We created a platform that can achieve what public markets used to,” says Shapiro. He says the Second Market platform provides several benefits to private companies and investors.
First and foremost, it allows companies to create controlled incentives to attract and keep talent.
Turns shares into real dollars
Companies are using SecondMarket to turn the shares once only theoretically valuable into real dollars. A company can tell a prospective new employee, we run a liquidity program once a year or twice a year. We think it’s a game-changer for mid-stage companies that need talent to take them to the next level.”
He adds, “It lets companies give liquidity to employees for a small percentage of their invested (stock equity) holdings. It gives the employees a shot in the arm, generates excitement, and rewards them for all their hard work.”
It also lets them achieve personal objectives sooner than they otherwise might, such as putting down payment on a house or paying for their children’s college tuition, he notes.
But that’s not the only reason companies turn to SecondMarket, Shapiro says. “It also lets them control the timing of their exit.” With SecondMarket providing some liquidity to investors and employees alike, it keeps both groups from chafing at the bit to see an exit.
Replacing dead equity with productive equity
“With SecondMarket they get an extra year where they don’t have investors and employees banging on the door for liquidity so they can time an exit keyed to their best outcome rather than because of pressure from investors and employees,” Shapiro says.
Finally, he adds, SecondMarket helps companies “Acquire new strategic investors who can help them enter a new market, support them in public markets, or play a passive role once they achieve scale. It replaces dead equity with productive equity.”
A recent SecondMarket report notes that 66 percent of the sellers on the platform are current company employees and 88.5 percent of the transactions are conducted with institutional buyers ranging from traditional venture capital firms to hedge funds and pension funds.
Tuesday, February 14th, 2012
Make connections with 60 showcase high growth technology companies from the Southeast and Mid-Atlantic as they present to hundreds of executives from the region’s innovation, entrepreneurial and venture communities, at the Southeast Venture Conference February 29th – March 1st at the Ritz-Carlton in Tysons Corner, Virginia.
In addition to presenting companies and hours of executive networking – the conference will feature a speaker line up including Netflix co-founder and former CEO, Marc Randolphand includes dozens of leading venture capital investors from groups like Lightbank and NEA; industry insiders from organizations including Bloomberg, Motley Fool and theNational Venture Capital Association; and other successful entrepreneurs such asOpenTable founder, Chuck Templeton.
This year’s presenting company line-up includes:
- 3CLogic - Rockville, MD; www.3clogic.com
- App47 - Reston, VA; www.app47.com
- ArcMail Technology - Shreveport, LA; www.arcmail.com
- beBetter Health - Atlanta, GA; www.bebetterhealth.com
- Benzinga - Dover, DE; www.benzinga.com
- Bion - Atlanta, GA; www.bioncorp.com
- BrazenCareerist - McLean, VA; www.brazencareerist.com
- Cardagin Networks - Charlottesville, VA; www.cardagin.com
- Careerminds Group - Newark, DE; www.careerminds.com
- CodeGuard - Atlanta, GA; www.codeguard.com
- CoupTessa - Miami, FL; www.couptessa.com
- cVidya Networks - Plantation, FL; www.cvidya.com
- DineTouch - Knoxville, TN; www.dinetouch.com
- Geosteller - Martinsburg, WV; www.geostellar.com
- Grab Networks - Dulles, VA; www.grabnetworks.com
- Green Wizard - Mount Pleasant, SC; www.greenwizard.com
- GreenCloud - Greenville, SC; www.gogreencloud.com
- GreenTec - Reston, VA; www.greentec-usa.com
- HemoSonics - Charlottesville, VA; www.hemosonics.com
- Kabbage - Atlanta, GA; www.kabbage.com
- Katharos - Raleigh, NC
- Koofers - Reston, VA; www.koofers.com
- LSN Mobile - Atlanta, GA; www.lsnmobile.com
- ExactCost - Hallandale Beach, FL; www.exactcost.com
- meet.com - Orlando, FL; www.meet.com
- MissionMode - Winston-Salem, NC; www.missionmode.com
- MobiBucks - Louisville, KY; www.mobibucks.com
- Netsertive - Research Triangle Park, NC; www.netsertive.com
- newBrandAnalytics - Washington, DC; www.newbrandanalytics.com
- Notable Solutions - Rockville, MD; www.nsiautostore.com
- Oversight Systems - Atlanta, GA;
- Payright Health - Hockessin, DE; www.payrighthealth.com
- Phymedica - Richmond, VA
- Pixelligent Technologies - Baltimore, MD; www.pixelligent.com
- Podponics - Atlanta, GA; www.podponics.com
- Preparis - Atlanta, GA; www.preparis.com
- SemaConnect - Annapolis, MD; www.semaconnect.com
- Sensiotec - Atlanta, GA; www.sensiotec.com
- Sparkfly - Atlanta, GA; www.sparkfly.com
- Sparkpad - Sterling, VA; www.sparkpad.com
- Sponto - Washington, DC; www.sponto.com
- Spring Metrics - Durham, NC; www.springmetrics.com
- StrikeIron - Cary, NC; www.strikeiron.com
- Tantalus - Morrisville, NC; www.tantalus.com
- Unrabble - Ft. Lauderdale, FL; www.unrabble.com
- Verdeeco - Atlanta, GA; www.verdeeco.com
- Vertical Acuity - Atlanta, GA; www.verticalacuity.com
- VoteIt - New Orleans, LA; www.voteit.com
- WeddingWire - Bethesda, MD; www.weddingwire.com
- Windsor Circle - Durham, NC; www.windsorcircle.com
- ZAP - Alpharetta, GA; www.zap-t.com
- Zephyr Technology - Annapolis,MD; www.zephyr-technology.com
- Zipit Wireless - Greenville, SC; www.zipitwireless.com
Register today to guarantee your space at the region’s premiere venture forum!
Monday, February 6th, 2012
People who have attended previous Southeast Venture Conference events tell us they are a great way to grab a spot on the radar of top venture capital firms, but also to make lasting connections with potential customers, partners and executives.
Here are six of the reasons the SEVC sells out year after year:
- You’ll make connections with the region’s top tech entrepreneurs and executivesWith 60 presenting companies and hundreds of high growth company C-level executives in attendance, SEVC lets you build partnerships with the region’s leading tech firms..At the 2009 SEVC, attendees had the chance to connect with the founder and CEO of an up and coming startup called, LivingSocial. At the time LivingSocial was the typical SEVC presenter, having recently raising their Series A round and looking to grow revenue. Since presenting at SEVC, LivingSocial has rocketed by raising well over $600 million in capital and has over $1 billion in annual revenue. Connect and partner with tomorrow’s LivingSocial at this year’s SEVC.
- You’ll network with leading venture capitalists and investors from around the USSEVC hosts leading investors and venture funds from around the US, not just the Southeast and Mid-Atlantic, who come to network with fellow investors and the region’s leading innovation talent.Whether you’re in venture fundraising mode or an investor looking to further relationships with fellow investors for deal flow, SEVC is the vehicle to make those connections.
- You’ll get market insight and success strategies from the innovation and venture community’s brightest starsFrom the founder of Netflix to thePresident of the National Venture Capital Association - SEVC will feature over 40 speakers discussing the latest trends, best practices and strategies relating to venture investing and entrepreneurial growth. You’ll learn from them not just during roundtable discussions, but in one on one situations as well through the hours of networking.
- To make networking and private meetings even easier, we’ve added a pre-event networking platform for attendeesNew this year at SEVC is our online networking platform which allows attendees to connect with one another prior, during or after the conference. Attendees can see other attendee’s interests, request and setup meetings and connect helping to maximize the lasting connections you’ll make at this year’s conference.
- Entrepreneurs can benchmark your pitch and strategiesUp and coming entrepreneurs can benchmark their pitches from the over 60 presentations from leading innovators in the region. These are companies that for the most part have already been successful in venture fundraising and are well on their way to success. You’ll not find another single forum on the east coast with this many funded companies presenting.
- Even more CXO and Venture Partner networking to create relationships that can last your entire careerNetworking is center stage at SEVC. Over one and a half days there are 3 separate open bar networking receptions, a networking breakfast, lunch networking and 7 additional networking breaks.
Showcase companies will present to a national audience of venture capitalists, private equity investors, angel investors and senior technology executives. Attendees will have additional opportunities to network and connect with these showcase companies throughout the conference – as well as prior to the conference with the online attendee networking platform.
You’ll need to register before Feb. 10 to get the conference rate at the Tysons Corner, VA, Ritz Carleton:
Register today to guarantee your space at the region’s premiere venture forum.
Thursday, January 19th, 2012
Speakers headed to the 6th Annual Southeast Venture Conference in Tysons Corner, VA, Feb. 29=March 1
Early, discounted regsitrations for the Southeast Venture Conference at Tysons Corner, VA, Feb. 29-March 1 end Friday, Jan. 20. This year the SEVC features Marc Randolph, co-founder of Netflix, Chuck Templeton, founder of OpenTable, Mark Heesen, president of the National Venture Capital Association, top venture capital firms and innovative tech startups.
Randolph is a leading Silicon Valley investor in addition to being co-founder and former CEO of Netflix. Randolph and Templeton are just two of the hundreds of leading venture investors and entrepreneurs headed to this year’s event.
VCS representing $50B in capital attending
Venture capital firms at the event represent $50 billion in investment money.
The 6th Annual Southeast Venture Conference also features presentations from more than 60 of the hottest Southeast and Mid-Atlantic high growth tech companies. Companies that presented at the 2011 SEVC had average revenues of $6 million.
Also on the agenda: Paul Lee, partner, Lightbank, Marshall Brain, founder of HowStuffWorks.com, Jalak Jobanputra, venture investor, New Venture Partners, Harry Weller, general partner, NEA, Sean Marsh, co-founder, Point Judith Capital, Robert Peterman, Toronto Stock Exchange, and Roland Reynolds, managing director, Industry Ventures.
New this year
New this year is a pre-event networking platform, which will allow attendees to connect ahead of the event, increasing the opportunities to make it even more productive.
The Southeast Venture Conference is the premiere venture forum in the region and has sold out every year. Register here.