SharesPost

SharesPost
Name	SharesPost
Type	Private
Industry	Financial services
Founded	2009
Founders	Jeffrey F. Crowley; Hunter Walk; Alfred Chuang
Headquarters	San Francisco, California
Key people	Brandon Walker; Alan Patricof; Frank Quattrone
Products	Secondary marketplace, private company investing, liquidity services

SharesPost SharesPost was a private financial services firm that operated a secondary marketplace for shares in private companies, providing liquidity to accredited investors and shareholders of venture-backed firms. It connected participants across the private capital ecosystem, facilitating transactions in pre-IPO technology companies and other private issuers. The firm engaged with venture capital firms, institutional investors, and corporate issuers while navigating regulatory frameworks in the United States.

History

SharesPost was founded in 2009 amid the aftermath of the Great Recession and the expansion of late-stage venture-funded technology companies such as Facebook, Twitter, and Airbnb. Early leadership included alumni from technology and investment communities linked to firms like Sequoia Capital, Accel Partners, and Kleiner Perkins Caufield & Byers. The company grew as private-market activity increased during the 2010s alongside fundraising by unicorns including Uber Technologies, Snap Inc., and SpaceX. SharesPost announced strategic partnerships and product launches while competitors such as SecondMarket and Forge Global (formerly Equidate) pursued similar secondary-market strategies. By the late 2010s, the private markets landscape featured consolidations, with activity influenced by regulatory developments involving the Securities and Exchange Commission and legislative agendas in Washington, D.C..

Services and Platform

SharesPost operated an electronic marketplace and advisory service for trading shares of private companies, offering tools for price discovery, transaction execution, and investor accreditation verification. Its platform catered to accredited investors, family offices, and venture-backed company shareholders, interfacing with custodians, broker-dealers, and transfer agents such as firms affiliated with Depository Trust & Clearing Corporation processes. Services included secondary share listings, private fund investments, and portfolio valuation data used by entities like Ernst & Young and PricewaterhouseCoopers in their private company reporting. The company also provided research and analytics, drawing interest from participants in the secondary markets for private equity and venture capital portfolios managed by groups like Blackstone Group and The Carlyle Group.

Regulation and Compliance

Operating in the private securities space required SharesPost to comply with regulatory regimes overseen by the Securities and Exchange Commission and self-regulatory organizations including Financial Industry Regulatory Authority. Compliance responsibilities included investor accreditation under Regulation D exemptions and adherence to rules governing broker-dealers and alternative trading systems as interpreted in cases involving entities like Goldman Sachs and Morgan Stanley. The firm engaged legal counsel knowledgeable about securities litigation and corporate governance issues arising from private placements, working alongside law firms with experience in matters before the United States District Court for the Southern District of New York and regulatory inquiries originating in San Francisco.

Funding and Business Model

SharesPost raised venture backing from investors and strategic partners connected to the technology and finance sectors, drawing capital from firms akin to Andreessen Horowitz, Lightspeed Venture Partners, and individual backers from the Silicon Valley ecosystem. Its revenue model combined transaction fees, advisory fees, subscription income for data services, and spreads from facilitating trades, a structure mirrored by market peers such as NASDAQ Private Market and Carta. The firm sought scale by expanding listings and cultivating relationships with issuers and institutional buyers, aiming to monetize price discovery and liquidity solutions for privately held companies including those in portfolios of Founders Fund and Benchmark Capital.

Criticism and Controversies

SharesPost faced scrutiny typical for secondary marketplaces, including questions about price transparency, conflicts of interest, and the acquisition of liquidity at valuations that could distort private company capitalization tables. Critics drew parallels to controversies involving other market participants like SecondMarket and debates over valuation practices publicized in coverage mentioning Theranos and late-stage WeWork financings. Regulatory commentators and investor advocates highlighted the challenges of ensuring fair dealing under FINRA oversight and the potential for information asymmetry between insiders and outside investors, concerns also raised in litigation affecting private secondary transactions.

Acquisition and Corporate Changes

In the late 2010s and early 2020s the private share trading sector underwent consolidation, with firms such as Forge Global acquiring or merging with competitors to expand market share; SharesPost experienced corporate changes including strategic partnerships, rebranding, and asset transactions reflecting this consolidation trend. The evolution of the company intersected with the broader restructuring of private capital services involving entities like EquityZen and institutional entrants from Goldman Sachs and Morgan Stanley Private Capital operations, reshaping distribution channels for secondary liquidity and private company investing.

Category:Financial services companies of the United States