With the trade in private shares of tech companies expected to grow by fifty percent this year, new players are joining established exchanges like SharePost and SecondMarket.
Gate Technologies, based out of New York, is one such challenger. It offers an electronic trading platform and claims to provide faster, less expensive transactions for investors.
According to Bloomberg, these companies are competing for more than $200 million in sales of private stock, a figure that is expected to rise as more tech firms opt out of the IPO market.
So far the trade in private shares has been limited to a few heavyweight likes Facebook, Twitter and Zynga. But Gate CEO vincent Molinari said he expects his firm to actively trade shares for between 25 and 50 private companies this year.
In the meantime, the SEC has begun nosing around, officially requesting information from SecondMarket last month.
bpopper [at] observer.com | @benpopper
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