Trading Places

SecondMarket Raises $15 M. From Social+Capital

chamath palihapitiya SecondMarket Raises $15 M. From Social+Capital

Chamath Palihapitiya

SecondMarket has long been the place where Facebook employees went to sell their private shares. But today SecondMarket will announce that it has raised $15 million from Social+Capital Partnership a new venture fund established by former Facebook senior executive Chamath Palihapitiya, who will also join the SecondMarket board of directors.

“We’re delighted to welcome Chamath as an investor and board member,” said SecondMarket Founder and CEO Barry Silbert in a statement issued by the company.  “He’s a strong entrepreneur advocate committed to investing in some of the most disruptive companies in the country, and he’s assembled some of the best investors in the technology world as limited partners.  We believe that Chamath’s tremendous success and experience helping Facebook to scale its business will prove invaluable to our growth.”

This money will add on to the capital SecondMarket raised in September, when it sold shares of SecondMarket … on SecondMarket. Clearly the company is eager for cash and anxious to expand. With the stock market turning into a roller coaster over global debt worries, trading on the secondary markets may look more appealing to investors than ever before.

“SecondMarket is a clear game-changer. It has become the preeminent platform for private company shares enabling companies to meet their liquidity needs, help retain and reward talent, and provide startups with an opportunity to monetize and grow their businesses,” said Palihapitiya.  “SecondMarket is a compelling alternative to companies that are not ready to navigate the public markets.”

Will the investment from Social+Capital actually lead SecondMarket to integrate social networking into their business? Venture Beat is reporting that this transaction values SecondMarket at $200 million, which is a jump from the $160 million the company assigned itself when it sold itself on SecondMarket. So wait, did SecondMarket sell itself at a discount just one month ago? [or gain $40 million in value in one month? –ed.]

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