So you’ve raised your B round, but an IPO isn’t really possible and the bigger fish aren’t yet sniffing around to acquire your company at a price that your venture backers are interested in. How do you sell some private stock to buy that sports car with cash? Welcome to the secondary market.
Shares of stock in companies like Facebook and Twitter are changing hands, even though the stock is not publicly traded yet. How do they do that? Well, I’m sure you have to carve out a bunch of restrictions on your stock, but there are markets out there to facilitate the exchange.
- Bazaarvoice Files for IPO (austinstartup.com)
- Private Stock Transactions Up 73 Percent This Year On SecondMarket (techcrunch.com)
- “Dark Pool” Looks to Bring Pre-IPO Firms to Institutions (allthingsd.com)