PRIVATE COMPANY REPORT

Q2 2010 Data

MARKET COLOR COMPLETED TRANSACTIONS (by industry) 1

It’s been a few months since our last Private Company
Media and Alt.
Report, so we decided to roll the data into a Q2 update. Software, 6% Energy/CleanTech,
Entertainment, 3%
You might also notice that we have revised the report 6%
slightly (see pages 2-3) to capture the interest buyers
have expressed in an array of hot start-ups from
Craigslist to Zipcar.

Last quarter, transactions were completed in several

prominent venture-backed companies, with Facebook
leading the pack. Asset managers constituted the
largest percentage of purchasers while former
employees represented the majority of sellers. Consumer
Products and
The total dollar amount of completed private company Services, 85%
stock transactions on SecondMarket in Q2 2010 was
$50,796,201.80.

COMPLETED TRANSACTIONS (by company) 1 BUYER TYPES (% OF TOTAL BUYERS) 1

45%
Silver Spring Twitter, 3%
MobiTV, 3% 40%
Networks, 6%
35%

LinkedIn, 6% 30%

25%
Bloom
Energy, 6% 20%

15%
Zynga, 12% Facebook, 64%
10%

5%

0%
Asset Family Offices Hedge Funds Individuals Venture
Managers Capital Funds

SHARES SOLD (by employee base) 2 SELLER COMPOSITION 1

60% 100%
90%
50% 80%
70%
40%
60%

30% 50%
40%
20% 30%
20%
10% 10%
0%
0% Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10
1 to 50 51 to 150 151 to 500 Greater than
500 Ex-Employees Employees Founders Investors Other

The information contained in this Report is subject to the notes and disclaimers that appear on page 4.
Source: SecondMarket, Inc. Q2 2010 Data4. 1on page 4.
 PRIVATE COMPANY REPORT
Q2 2010 Data

BUYER DEMAND* BUY / SELL DEMAND (by industry) 3

The new charts – most of this page and the next – reflect
the companies most sought after by SecondMarket
90%
buyers. Congratulations to eHarmony, Huffington Post
and the others who burst onto the scene this quarter 75%

and grabbed the attention of our buyers.

60%

Note that the “indications of interest” (IOIs) expressed 45%

by potential buyers on SecondMarket do not indicate
that the particular company’s shares are available for 30%

sale. The IOIs only demonstrate that our buyers would 15%
like to purchase those shares if available.
0%
So what do the charts mean? “New Entrants” reflect the
companies who began to attract interest in Q2. “Fastest
Growing” indicates the greatest percentage of increase
in buyer interest, and the “Top Ten” is the overall
percentage of buyer interest. The next page provides a
monthly breakdown of buyer interest in the top Buy-side Demand Sell-side Demand
companies.

NEW BUYSIDE INTEREST IN Q2 TOP 10 COMPANIES WITH THE MOST BUYER INTEREST
Consumer Product Overall % of
eHarmony
and Services Ranking Company Buyside Interest

Groupon
Consumer Product
and Services
 37.1%

Huffington Post
Consumer Product
and Services
 7.5%

Mozilla Software
 5.8%

Skype Telecommunications
 4.9%

FASTEST GROWING BUYSIDE INTEREST IN Q2  2.9%

 2.3%

207%
 1.7%

123% 113% 104%

 1.4%
100%

 1.2%

Gilt Groupe Groupon Pandora Techcrunch Zynga

 1.2%

The information contained in this Report is subject to the notes and disclaimers that appear on page 4.
Source: SecondMarket, Inc. Q2 2010 Data4 2
 PRIVATE COMPANY REPORT
Q2 2010 Data

MONTHLY BUYER INTEREST IN THE MOST POPULAR START-UPS

FACEBOOK ZYNGA LINKEDI N

10.0%
38.0% 10.0%

8.0%
36.0% 8.0%

6.0%
34.0% 6.0%

4.0% 4.0%
32.0%

30.0% 2.0% 2.0%

28.0% 0.0% 0.0%

TWITTER GROUPON YELP

5.0% 5.0%
10.0%

4.0%
8.0% 4.0%

3.0%
6.0% 3.0%

2.0%
4.0% 2.0%

2.0% 1.0%
1.0%

0.0% 0.0%
0.0%

PANDORA ZIPCAR CRAIGSLIST

2.5% 5.0%

2.5%

2.0% 4.0%

2.0%

1.5% 3.0%
1.5%

1.0% 2.0%
1.0%

0.5% 1.0%
0.5%

0.0% 0.0%
0.0%

The information contained in this Report is subject to the notes and disclaimers that appear on page 4.
Source: SecondMarket, Inc. Q2 2010 Data4 3 appear on page 4.
 PRIVATE COMPANY REPORT
Q2 2010 Data

Notes for Graphs

1) Based on total number of completed transactions for the quarter.

2) Based on total number of completed transactions since the private company market launch in April 2009.

3) “Buyer” refers to a party who has indicated interest in purchasing a company’s stock. “Seller” refers to a party who has
shares for sale. If buyer demand is met, or a seller does not wish to sell any more stock, the party is removed from the
data.

* Indications of Interest (“IOIs”) represent when accredited members of SecondMarket indicate an interest in investing in
a particular private company. IOIs are submitted by members electronically on the SecondMarket
platform. SecondMarket does not represent that IOIs indicate that markets for those private companies exist on the
SecondMarket platform and, in fact, markets do not currently exist for a significant number of those private companies.

** A “completed transaction” refers to a transaction where the buyer and seller have signed and exchanged purchase and
sale agreements. In some instances, the issuer, an issuer’s investor(s), or their respective designee(s) may execute a
“right of first refusal,” wherein the buyer who signed the purchase and sale agreement does not acquire the shares and
ownership of the shares is reverted to the respective issuer, investor or designee.

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