2. PRIVATE COMPANY REPORT
February 2010
MARKET COLOR COMPLETED TRANSACTIONS (by industry) 1
SecondMarket trading activity in private company stock
continued to be strong in the new year. Private stock
trades were concentrated exclusively in two industries,
with consumer products & services and alternative
energy making up 36% and 64% of the volume,
respectively. Consumer
Products and Alt.
The prospect of near-term liquidity events for certain Services Energy/Clean
36% Tech
companies in the alternative energy industry was likely a
64%
contributing factor to the increased activity. Moreover,
as speculation grew about a more active 2010 IPO
market, the more mature private companies witnessed
an increase in the trading of their stock.
The total dollar amount of completed transactions in
January 2010 was $13,041,786.
COMPLETED TRANSACTIONS (by company) 1 FUNDING STAGE OF COMPANIES TRADED 1
70%
60%
50%
Tesla Solyndra
Motors 28% 40%
29%
30%
GridPoint 20%
7%
Facebook
10%
36%
0%
Series A Series B Series C Series D Series E &
Above
SHARES SOLD (by employee base) 2 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. January 2010 Data
3. PRIVATE COMPANY REPORT
February 2010
BUYER / SELLER OVERVIEW BUY / SELL DEMAND (by industry) 3
The trend of buyer demand for the hottest and most
visible private companies carried into 2010 as Facebook 75%
(32%), Twitter (7%), LinkedIn (5%) and Craigslist (5%)
60%
made up half of all buy-side demand. However, investors
are still demonstrating a broad array of interest. 45%
As buyers in nearly 65% of the transactions, asset 30%
managers aggressively jumped into the market in 15%
January. Secondary direct investors maintained their
strong position with just under 30% of the market 0%
compared to almost 35% last month.
Increased trading activity and a greater need to return
capital to investors led more institutional sellers to seek
liquidity on SecondMarket. Given the underlying market
forces, we expect this trend to continue and become a Buy-side Demand Sell-side Demand
permanent fixture in the private company stock market.
BUYSIDE DEMAND (by company) 3 BUYER TYPES (% of total buyers) 1
80.0%
70.0%
60.0%
50.0%
Other, 37% Facebook, 32%
40.0%
30.0%
20.0%
Twitter, 7%
10.0%
Zynga Game
Network, 2% 0.0%
Kayak, 2% LinkedIn, 5% Venture Secondary Hedge Family Asset Individuals Issuers
Yelp, 2%
Capital Funds Funds Offices Managers
SecondMarket, Tesla Craigslist, 5%
Funds
2% Digg, 2% Motors, 4%
SELLSIDE DEMAND (by security type) 3 SELLER COMPOSITION 1
100%
Securities Available for Sale
100%
90% 90%
80% 80%
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10%
10%
0%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan 0%
Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10
% of Preferred 8% 10% 15% 4% 3% 3% 13% 13% 9% 17%
% of Common 92% 90% 85% 96% 97% 97% 87% 87% 91% 83% Ex-Employees Employees Founders Investors Other
Source: SecondMarket, Inc. January 2010 Data
4. PRIVATE COMPANY REPORT
February 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
by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss
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. January 2010 Data
