Secondary Markets

SecondMarket’s Barry Silbert Thinks That NASDAQ and the NYSE Are Broken

barry

On his blog New York Summer, HackNY fellow Akarshan Kumar has been thoughtfully posting about all the tech luminaries that come to influence young minds towards the start-up life and away from Wall Street. The latest lecture notes come from SecondMarket founder Barry Silbert, a former banker himself.

Using examples like the decreasing rate of IPOs over the past decade, the flash crash last May, the impact of high-frequency traders, and the decreasing average holding period of stock (down to just 2.8 months), Mr. Kumar says, “Silbert claimed that the public markets are broken, probably even beyond repair, and that the future lies in private markets.” Read More

Tech Bubble Watch

Fred Wilson Says USV is Paying 25-50% More To Enter Deals Than in 2008

Erick Schonfeld got a quick interview with Fred Wilson today at TechCrunch Disrupt.

“Yes things have gotten very expensive if you’re an investor, but if you’re already in a company, you are benefiting from that,” said Wilson. “Opportunities come along that we like but they just don’t fit our mold anymore. 3 years ago to now, the valuations are up between 25-50% as an entry price. We have to move with the market.” Read More