Yesterday alternative investment marketplace, SecondMarket released a snapshot of the private companies that use its platform.
The survey, which is meant to paint a picture of the typical private company using SecondMarket, is based on a six-month assessment over the course of the first half of 2012.
Here are some highlights:
- Companies use the SecondMarket platform for three main reasons:
- Replace early shareholders with new, strategic investors who are supportive of the company’s long-term vision
- Attract and retain key employees
- Satisfy liquidity demands of their shareholders
- $329 million average market cap
- $108 million average funding received
- Average company age is 7 years
- Preferred stock accounts for almost 60% of shares sold
- Almost 50% of companies using SecondMarket are in the gaming industry, while 10% represent the financial industry
- Hedge Funds represent almost half of all buyers, while Family Offices account for a little over 20%
SecondMarket demoed at FinovateStartup 2009.