SecondMarket: Private Company Market 2011 Report

SecondMarket went hog wild with a series of infographics showing their activities for 2011.

The only thing you wont find are the actual prices of recent trades — which makes this less of a market or exchange and more of a private equity association. That’s my big caveat with them: Real markets show real prices.

Anyway, here are the key data points:

• More than $558 million in transactions (up 55% year over year);
• 61.4% of all transactions were consumer Web and Social related; 22.1% were consumer products and services;
• Top 3 Buyer-types: Asset Managers (31.3%), Family Offices (29.6%) and Hedge Funds (16.6%)
• Top 3 Seller-types: Ex Employees (79.3%), Current Employees (11.1%), Investors (3.7%)
• Most Watched Private Companies: Facebook, Twitter, FourSquare, Dropbox, Yelp

Lots of charts follow . . .


More charts after the jump

The chart below is a breakdown of SecondMarket’s 2011 private company stock transactions by industry.

The charts below provide detail on the buyer types that purchased private stock on SecondMarket in 2011.

The chart on the left shows the distribution of transaction volume between institutional and individual buyers. The chart on the right is a breakdown, by dollar value, of all institutional buyers.

The chart below offers a breakdown of seller types that sold private stock on SecondMarket in 2011.

The chart below represents market demand on SecondMarket, defined by participants submitting Indications of Interest to buy or sell private shares, classified by company industry.

The chart below summarizes the ten VC-backed private companies with the highest number of watchers on SecondMarket.

The chart below summarizes the ten non venture-backed private companies with the highest number of watchers on SecondMarket.

“Sprouting Sectors” summarizes the types of private companies, as defined by industry, that finished Q4 2011 with the most watchers.

“Rising Stars” features the venture-backed private companies on SecondMarket with the largest quarter-on-quarter percent increase in total watchers.

After topping the Newbies list in Q3, Pinterest climbed to the top of the Rising Stars list in the fourth quarter. The company, founded in 2008 by Paul Sciarra, Evan Sharp and Ben Silbermann, provides a social catalog service where users can create virtual pinboards.

The second and third place spots on the Rising Stars list are occupied by two companies in the Health Care Industry: Practice Fusion and ZocDoc, respectively. Practice Fusion provides a free, web-based Electronic Medical Record system to physicians, and ZocDoc is a free online service for patients to book doctor appointments. Klout and Kickstarter held onto their spots on the list in Q4, moving to the fourth and fifth spots, respectively. This is Kickstarter’s third consecutive appearance on the Rising Stars list.

“Newbies” tracks private companies that started the quarter with fewer than ten watchers and started to gain traction by the end of Q4. The list below includes venture-backed companies that saw an increase in watchers in the fourth quarter., a website that features sales from the world’s leading designers and manufacturers topped the Q4 list with 34 watchers. Next was oDesk, which enables both employers and contractors of technical, business and creative services to build successful work relationships across the globe, followed by StumbleUpon. Truecar and Rdio rounded out the Newbies for Q4.

New to the report this quarter are the non venture-backed Newbies. The list below includes non venture-backed companies that started the quarter with fewer than ten watchers and saw an increase in watchers in Q4.

In-N-Out Burger, a regional chain of fast food restaurants with locations throughout the western U.S., topped the inaugural list of non venture-backed Newbies with 75 watchers. Three breweries based in the Northeast secured second, third, and fourth places; Dogfish Head, Brooklyn Brewery, and Yuengling, respectively. Rounding out the list of non venture-backed companies was Arenal Energy Corporation, a company that evaluates and acquires undervalued oil and gas leasehold property interests.

SecondMarket’s “VC Scoreboard,” introduced in Q2, tracks the ten venture capital firms with the most portfolio companies in SecondMarket’s 100 most-watched list. The list below features the top VC firms and the number of their portfolio companies in the top 100.

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