Exiting A Crowdfunded Equity Deal

So you bought some crowdfunded stock and need cash. Assuming that you’re not contractually bound to hold the shares, can you liquidate?

There are now a few private markets where crowdfunded shares can be sold, including SecondMarket. SecondMarket claims to have processed over $1.4 Billion in trades in 2014. https://www.secondmarket.com/

You can also go to the Nasdaq Private Market. In addition, based on the high valuations and delayed IPO’s there are now some institutional funds that are buying into secondary sales. https://www.nasdaqprivatemarket.com/


About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Broker dealers, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Film, FINRA, Funding Portals, Investments, Jobs, Legislative Intent, SEC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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