WSJ Article Illustrates the Growing Secondary Direct Market
In an April 12, 2012 Wall Street Journal article entitled Seeking 'Second' Life for Facebook, Jason Jones, chief executive of HighStep Capital, said "As the time between companies' creation and their listing has lengthened, secondary shares have become a new asset class between venture-capital investing in startups and public markets."
Elsewhere the article states that "...companies still want to stay private longer, thus forcing employees and other investors who want to cash out to use the secondary market. The asset class has gone from obscure, unloved and sometimes unwelcomed a decade ago, to widely accepted and a fundamental part of the venture capital ecosystem today."
The article contained the following graphic showing one firm's estimate of the size of the secondary direct market. We agree that 2012 may be a lower volume year relative to 2011 which was driven in large part by Facebook transactions, but we are very optimistic about the market's long-term growth trajectory.