Second Market, the private stock trading platform, has posted a bunch of charts on what it saw in Q1 2011.
Overall, it completed $115.4 million in transactions for the quarter, with consumer tech companies the most sought after investments.
It also says interest from "high net worth individuals" increased significantly in Q1 as compared to Q4.
The reason for the increased interest? Second Market says startups were more relaxed in their rules about selling shares, and Second Market made it easier for individuals to buy stock.
Consumer products and services (like Facebook and Twitter) were basically the only thing investors were interested in.
Who's buying these stocks? The majority in Q1 was "high net worth individuals". VC Funds stopped buying altogether.
Why the shift towards rich people buying private stock? Second Market says, "private companies continued to become more open to individual investors, minimizing usage of Right of First Refusal (ROFR) and allowing more individual investment purchases to close." It also says that it made it easier for individual investors to buy shares.
Fewer employees are sold shares in Q1. (Perhaps because it's harder now? Or perhaps because IPOs are drawing near?)
See the rest of the story at Business Insider
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Source: http://feedproxy.google.com/~r/businessinsider/~3/nr3dOCrdgZg/second-market-report-2011-5
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