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As many personal Companies try not to raise capital in the current market, it has become very difficult to know what companies are worth. But in the traditional way market Even It hints at less transparency than the venture.
The secondary market, where investors buy and sell shares in a startup or fund, provides a more liquid way to tell buyers and sellers how companies are valued between regular funding rounds. These deals have generally been harder to track than major-cap deals, because they’re generally not public, but a new group of startups is shining a light on them.
In the past few years, several startups, including Caplight and Notice, have launched products that track both completed secondary deals as well as buyers’ and sellers’ bids, providing consumers with a real-time view of how investors are valuing companies. Others seem to make it easier to trade secondary shares, including the Birrell and Hive markets.
Capilite founder and CEO Javier Avalos told TechCrunch+ earlier this year that he was inspired to build his company because the lack of transparency in the market prevented institutional investors from properly managing or hedging their bets in the space. Low risk.
Tyson Hendrickson said he started advertising in 2021 because he felt the industry, which he had brokered for years, was not sufficiently accessible to all affected stakeholders — especially the company’s employees with stock options.
He told TechCrunch+: “As a broker, I’m overwhelmed every day because the information is so fragmented and overwhelming. “It was very difficult to know what was going on. That was my job. It was very difficult for everyone who had a half hour lunch break and wanted to know whether they wanted to sell their shares or not.
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