SecondMarket Looks Beyond Facebook


In a report just released SecondMarket reported that it continued to grow its trading volume in the last quarter it had access to Facebook shares.

The company that trades private company shares completed $165 million in trades in the first quarter, up from $115 million a year earlier, and up from $127 million in the fourth quarter of 2011.

Though Facebook was in high demand before SecondMarket stopped trading its shares at the end of March, it didn’t dominate Facebook’s trades. In fact, for the first time software company shares were the majority of transactions, surpassing consumer web and social media shares for the first time.

SecondMarket won’t disclose which companies it trades, but it said that there was a surge in activity around enterprise, software as a service, and cloud computing companies with valuations in the $250million- $500 million range. These are companies like Dropbox, Desktone, and

The trading platform does disclose which companies are drawing new investor interest, releasing a list of what it calls “Rising Stars,” a measure of the quarter-over-quarter growth in the number of “watchers,” or people who are tracking the company.

Pinterest is number one, with a 667% increase in the number of interest from Q4 to Q1. It’s followed by online eyewear company Warby Parker, Strike Media, an online payments platform, software platform Service Now, and software development service Global Logic.

SecondMarket isn’t trading Pinterest yet, but c'mon, surely it’s reached out to the sharing platform about getting permission to trade its shares.

And beyond adding new companies like Pinterest, SecondMarket is diversifying further. It just added a pilot program to trade private community bank shares. And it’s starting to offer funds for alternative assets, like wine, art, and diamonds.

Questions? Comments?