Private Shares

Foursquare is Most Wanted on Second Market

On the list of private tech companies that investors are eager to snap up on Second Market, Foursquare is hanging in some elite company. It currently ranks number six on the most watched list, behind billion dollar behemoths like Facebook, Twitter, Groupon, Zynga and LinkedIn.

In fact Foursquare ranks above Skype, which had flirted with an IPO before being acquired by Microsoft for $8.5 billion dollars. Of the top eight companies, Foursquare is the only one that has not been closely watched for a public offering in recent months.

secondmaret rising stars Foursquare is Most Wanted on Second Market

Foursquare was the fastest growing company on second market in terms of interest, surging 2950% over the fourth quarter of 2010. The caveat here is that SecondMarket rolled out a new trading platform in March of 2011, which caused a big spike in overall activity.

As Jay Yarow points out, of the $115 million in transactions made so far in 2011, the biggest increase was among wealthy, private investors. Venture Capital firms, which made up 43% of the buy side at the end of 2010, dropped out of the market completely.

That’s not a great sign for those who see the top in tech valuations, since it implies the insiders, venture capitalists, are no longer interested. The buyers now are wealthy individuals Yarow is calling the “dumb money”.

secondmarket buyers Foursquare is Most Wanted on Second Market

 

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