SecondMarket Acquires InsideVenture

SecondMarket, the largest marketplace for illiquid assets, announced today that it has acquired Menlo Park-based InsideVenture, a facilitator of financing for late-stage private companies. With this announcement, SecondMarket will add a capital introduction service to its robust secondary market for private company stock. As part of the transaction, SecondMarket also announced the opening of its Silicon Valley office.

"This is an exciting acquisition for SecondMarket as we look to expand our position as the leading marketplace for private company stock,” said SecondMarket CEO Barry E. Silbert. "InsideVenture’s ability to match exciting, venture-backed companies with investment banks and top-tier investors adds an important capital introduction service to SecondMarket’s leading secondary program,” added Mona DeFrawi, founder and CEO of InsideVenture.

As part of the acquisition, New Enterprise Associates, Inc. (NEA) and SVB Financial Group will both take equity stakes in SecondMarket. The specific terms of the deal were not disclosed.

"We are thrilled to be involved with an innovative company like SecondMarket that is bringing much-needed liquidity to venture-backed companies and their investors,” said Chuck Newhall, General Partner and Co-Founder of NEA. "This acquisition allows private companies to benefit from SecondMarket’s secondary expertise along with InsideVenture’s success in connecting late-stage companies to capital from high-value investors.”

Launched earlier this year, the SecondMarket private company program, which allows companies to control the secondary market for their own shares, has garnered significant support from both entrepreneurs and the venture capital community. "We have monitored this market closely, and SecondMarket has clearly emerged as the industry expert,” said Mark Heesen, President of the National Venture Capital Association (NVCA). "We believe that SecondMarket has the right model to help fill the gap that exists in the capital formation process as a result of the systemic issues that have arisen in the public markets over the past decade.”

SecondMarket has facilitated over $1 billion in transactions in 2009, including tens of millions of dollars of transactions in leading private companies, and nearly 20 companies have already signed up for its private company program. Currently SecondMarket has over $200 million in private company stock available for sale.

"We have been extremely successful in working directly with companies and their shareholders to facilitate secondary liquidity,” said SecondMarket’s Silbert. "With our acquisition of InsideVenture, we are adding the primary raise piece that is so critical for fast growing companies. We look forward to working with investment banking advisors, the country’s top venture capitalists and asset managers to help private companies finance their growth and development.”

In addition to private company stock, SecondMarket has established itself as the leading centralized marketplace for a variety of assets, including limited partnership interests, auction-rate securities, bankruptcy claims, residential and commercial mortgage-backed securities, collateralized debt obligations, warrants/restricted stock in public companies and whole loans.

About SecondMarket

Founded in 2004, New York-based SecondMarket is the largest secondary market for illiquid assets, including private company stock, limited partnership interests, auction-rate securities, bankruptcy claims, collateralized debt obligations, residential and commercial mortgage-backed securities, warrants/restricted stock and whole loans. SecondMarket, which has conducted more than $1 billion in transactions in 2009, has more than 4,000 participants, including global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors that collectively manage over $1 trillion in assets. For more information, visit www.SecondMarket.com. SecondMarket is a registered broker-dealer (Member FINRA, MSRB and SIPC).

About NEA

New Enterprise Associates, Inc. (NEA) is a leading venture capital firm focused on helping entrepreneurs create and build major new enterprises that use technology to improve the way we live, work and play. Since its founding in 1978, the firm has followed the same core principles: supporting its entrepreneurs, providing an excellent return to its limited partners, and practicing its profession with the highest standards and respect. Through its affiliated funds, NEA focuses on investments at all stages of a company’s development, from seed stage through IPO. With approximately $8.5 billion in committed capital, NEA’s experienced management team has invested in over 650 companies, of which more than 160 have gone public and more than 250 have been acquired. NEA has U.S. offices in Chevy Chase, Maryland; Menlo Park, California; and Baltimore, Maryland. In addition, New Enterprise Associates (India) Pvt. Ltd. has offices in Bangalore and Mumbai, India and New Enterprise Associates (Beijing) Ltd. has offices in Beijing and Shanghai, China. For additional information, visit www.nea.com.

About SVB Financial Group

For 25 years, SVB Financial Group and its subsidiaries, including Silicon Valley Bank, have been dedicated to helping entrepreneurs succeed. SVB Financial Group is a financial holding company that serves companies in the technology, life science, venture capital/private equity and premium wine industries. Offering diversified financial services through Silicon Valley Bank, SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services, SVB Financial Group provides clients with commercial, investment, international and private banking services. The company also offers funds management, broker-dealer transactions and asset management, as well as the added value of its knowledge and networks worldwide. Headquartered in Santa Clara, Calif., SVB Financial Group (Nasdaq: SIVB) operates through 27 offices in the U.S. and international operations in China, India, Israel and the United Kingdom. More information on the company can be found at www.svb.com.