Luisa Beltran
Despite all the fuss about secondary sales, such transactions are a booming business for firms such as Millennium Technology Value Partners.
The New York VC firm has completed 300 secondary liquidity transactions in the past nine years, valued at over $500 million in assets, says Samuel Schwerin, a Millennium managing partner.
Secondary liquidity events, or secondary sales, refer to shareholders selling their positions or investments in pre-IPO companies to other investors. Schwerin expects such deals to become a $10 billion business within five years. This year, secondary sales are expected to hit more than $3 billion, up from the $1 billion in 2009, he says.
TruMarx Data Partners has closed a round of funding led by board members Jerry Putnam, the ex-CEO Archipelago Holding, and Kevin J.P.O'Hara, who is the former chief administrative officer of CBOT Holdings. Other investors in the round include Vernon & Park Capital and Walter G. Kortschak, the ex-managing partner of Summit Partners. Vernon & Park is a PE firm. TruMarx, of Chicago, is developing COMET, a web-based execution platform that allows power and natural gas market participants to create an individual private market.
IGNIA Fund, a venture capital firm focused on Mexico and the rest of Latin America, has invested MX$38.1 million (US$3.1 million) in Servicios Caseteros S.A.P.I. de C.V. ("Barafon") provider of public telephony and related services to low income populations in Mexico. Barafon, of Mexico City, is public telephony operator.
Halfpenny Technologies, which recently secured $2.6 million in VC funding, said Wednesday that it has appointed four healthcare executives to its management team. They are: Mitch Fry, executive vice president of business development; Daniel O’Brien, chief financial officer; Roger W. Newbury, senior vice president of sales; and Jim Sheils, vice president of sales. Blue Bell, Pa.-based Halfpenny is a health information exchange services provider.
Predixion Software said Wednesday that it has closed a $5 million Series A round of funding led by DFJ Frontier. Predixion, of Alisa Viejo, Calif., develops software around predictive analytics and data mining. Los Angeles-based DFJ is a VC firm.
GutCheck said Tuesday that it had closed $2 million in Series A funding led by Highway 12 Ventures. Village Ventures, iModerate Research Technologies and Benenson Strategy Group also participated. Denver-based Gutcheck provides online qualitative market research.
Hoyos Corp., formerly known as Global Rainmakers, has closed a $40 million of funding. Hoyos, of Puerto Rico, is an intellectual propety holding company and R& D laboratory. Hoyos did not disclose the investors other than to say the round was led by one of its primary shareholder and a PE partner.
Care.com said Tuesday that it has closed $20 million in funding led by New Enterprise Associates. Existing investors Matrix Partners and Trinity Ventures joined in the round. Waltham, Mass.-Care.com is an online services where uses can find caregivers for children, seniors or pets. New Enterprise Associates is a Menlo Park, Calif-based VC firm.
Covington Capital Corp. has agreed to buy VenGrowth Asset Management's five retail funds, as well as the New Generation Biotech (Equity) Fund. Covington, a Toronto VC fund, has also secured third party financing of up to $60 million. VengGrowth, also of Toronto, is a PE firm.
Online Warmongers has completed a $5 million investment round led by Arktos Entertainment Group, a Los Angeles investment and holding company. Online Warmongers is a San Francisco videogame developer.