Facebook dominated the list for the third consecutive quarter, holding a distant lead in number of SecondMarket participants watching the company. Runner up Twitter successfully held the second spot for the second consecutive quarter. Groupon, which debuted at #6 in Q4 2010, moved into the third spot last quarter. New to the list were Foursquare, Pandora, Skype and Gilt Groupe. The ranking showed that investors remain interested in companies behind widely used social media.
The “Rising Stars” list tracks private companies on SecondMarket with the largest quarter-on-quarter increase in total SecondMarket participants who “watch” the companies. The number of SecondMarket participants watching Foursquare, the location-based mobile platform leader, jumped 2950%.* Dropbox, an online file hosting service, was second, with 1640% increase in watchers. Rounding out the list were music & entertainment startup Spotify, communications company Skype and e-commerce firm Gilt Groupe.
The uptick for these companies was driven, among other factors, by meaningful press in their respective market segments. For example, investor interest in Spotify grew upon news of its possible expansion from Europe to the US. HauteLook being acquired by upscale department store Nordstrom increased SecondMarket participant interest for Gilt Groupe.
*Percentage increases were dramatically higher than past quarters, due to the launch of SecondMarket’s new platform in March 2011.
This list tracks private companies being watched for the first time by SecondMarket participants.
In Q1 2011, the private company new to being watched and with the most watchers was Hulu. The LA-based startup is the second largest online video provider after Google’s Youtube, supplying web video services for NBC Universal, Disney and others. The company is being watched on SecondMarket by over 450 participants.
After Hulu, LivingSocial, a top competitor to Groupon, gained interest for the first time last quarter by SecondMarket participants. Quora, an emerging popular Q&A website, Square, a mobile payments startup, and Alibaba Group, the China-based e-commerce firm, rounded out the list of Top 5 “Newbies.” Learn more about these private companies on SecondMarket’s new platform, including detailed company history, market data for eligible investors and more.