PRIVATE COMPANY REPORT
March 2010
MARKET COLOR COMPLETED TRANSACTIONS (by industry) 1
Trading activity in private company stock rose
significantly on SecondMarket this month. After 2010
began with over $13 million in transactions in January, Media and
we had more than a three‐fold increase in completed Entertainment
transactions in February. 15%
The transactions were concentrated in two industries:
consumer products & services (85%) and media &
entertainment (15%). The biggest names in social media
– Facebook, LinkedIn and Twitter – continued to attract
considerable attention from investors on SecondMarket, Consumer Products and Services
and that trend could persist throughout the year. 85%
The total dollar amount of completed private company
stock transactions on SecondMarket in February 2010
was $43,815,337.50.
COMPLETED TRANSACTIONS (by company) 1 FUNDING STAGE OF COMPANIES TRADED 1
LifeLock
70%
4%
60%
50%
LinkedIn
18% 40%
Facebook 30%
48%
Twitter 20%
15%
Zynga 10%
Game
Network 0%
15% Series A Series B Series C Series D Series E &
Above
2
SHARES SOLD (by employee base) SHARES SOLD (by company location) 2
60%
50%
40%
30%
20%
10%
0%
1 to 50 51 to 150 151 to 500 Greater than
500
Source: SecondMarket, Inc. February 2010 Data
PRIVATE COMPANY REPORT
March 2010
BUYER / SELLER OVERVIEW BUY / SELL DEMAND (by industry) 3
Not surprisingly, given the composition of completed
75%
transactions in February, there continued to be
significant buyside indications of interest in the most 60%
recognizable venture‐backed private companies.
45%
Facebook (32%) led the way with one‐third of all buyside
demand followed by Twitter (7%) and LinkedIn (5%). 30%
Interest in Zynga (3%) also rose in February.
15%
Asset managers (70%) continued their increased 0%
involvement as buyers. Moreover, venture capital firms,
traditionally investors in primary capital raises, have
become more involved in the secondary market.
Ex‐employees of start‐ups stepped up their selling
activity in February, comprising over 80% of sales Buy‐side Demand Sell‐side Demand
(highest in nine months).
3
BUYSIDE DEMAND (by company) BUYER TYPES (% of total buyers) 1
80%
70%
60%
Facebook
32% 50%
Other, 37%
40%
30%
Zynga 20%
Game Twitter
Network 7%
10%
3%
Kayak
0%
2% LinkedIn
Yelp 5% Venture Secondary Hedge Family Asset Individuals Issuers
2% SecondMarket Digg Tesla Motors Craigslist Capital Funds Funds Offices Managers
2% 2% 4% 4%
Funds
3 1
SELLSIDE DEMAND (by security type) SELLER COMPOSITION
100%
100%
90%
Securities Available for Sale
90%
80%
80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20%
20%
10%
10%
0%
Jun Jul Aug Sep Oct Nov Dec Jan Feb 0%
% of Preferred 15% 4% 3% 3% 13% 13% 9% 17% 7% Jun‐09 Jul‐09 Aug‐09 Sep‐09 Oct‐09 Nov‐09 Dec‐09 Jan‐10 Feb‐10
% of Common 85% 96% 97% 97% 87% 87% 91% 83% 93%
Ex‐Employees Employees Founders Investors Other
Source: SecondMarket, Inc. February 2010 Data
PRIVATE COMPANY REPORT
March 2010
Notes for Graphs
1) Based on total number of completed transactions for the month.
2) Based on total number of completed transactions since the private company market launch in April 2009.
3) “Buyer” refers to a party who has indicated interest in purchasing a company’s stock. “Seller” refers to a party who has
shares for sale. If buyer demand is met, or a seller does not wish to sell any more stock, the party is removed from the
data.
**A “completed transaction” refers to a transaction where the buyer and seller have executed and exchanged purchase and
sale agreements.
Disclaimer and Disclosure
The information contained in this report ("Report") is based on sources we believe to be reliable at the time it was
produced and distributed. However, neither we nor any of our affiliates or any other person makes any representation or
warranty, express or implied, as to the Report's accuracy, completeness, or correctness. To the maximum extent permitted
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or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use
of or reliance on our research or the information contained herein.
This Report is not a solicitation, or offer, to buy or sell any security or claim. Nothing in this report constitutes legal,
accounting or tax advice or individually tailored investment advice. This Report was prepared for general circulation and
without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. No
one receiving or accessing this Report should make any investment decision without first consulting his/her own personal
financial adviser and conducting his own research and due diligence, including carefully reviewing any applicable
prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. There is not
enough information contained in this Report to make an investment decision.
Source: SecondMarket, Inc. February 2010 Data