SecondMarket Sets Up Transfer Facilities For Startups To Manage Secondary Sales

TechCrunch

SecondMarket, the secondary transaction manager whose involvement in Facebook’s pre-public offering fire sale of shares arguably hurt the social network’s eventual initial offering, is now launching a new product to put more control over secondary sales in the hands of startups.

With private companies staying off the public boards longer and valuations for later stage rounds climbing,  an increasing number of firms are launching to invest in secondary sales (sales of shares owned by company employees or investors that were distributed as part of earlier rounds or as compensation).

As these firms start preying on SecondMarket’s turf, the progenitor of the secondary sale for venture capital investments is offering a new product to later-stage venture backed companies that focuses on better managing the secondary process (oh, the irony).

“We did about $1.5 billion in company-controlled secondaries last year. And the model there is a broad-based…

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