VCs from Accel, Atlas and Google Ventures Are Skeptical of Secondary Market Trading
(Reuters) - Venture capitalists are wary of the secondary markets that have soared in popularity with investors looking for a piece of action in private companies like Facebook, Twitter and Groupon. The secondary markets, which enable the exchange of shares in privately held companies, are a black hole because private companies are not required to disclose financial information. "It is scary and I would be very careful before doing any such deals," Axel Bichara, a partner with Atlas Ventures, said during the venture capital panel at Reuters Global Technology Summit on Wednesday in New York. Bill Maris, a managing partner at Google Ventures, said secondary market trading creates all types of market forces
19 May 2011•2 mins read
