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In a move that could change the future of investing in privately held companies, SharesPost will feature real-time pricing on Bloomberg’s Professional service.SharesPost allows investors to trade in shares of some of the world’s most valuable privately held companies, including Facebook, Twitter, Yelp, and Dropbox.
“Most of the 310,000 Bloomberg terminals are not SharesPost members, so now we can grow our footprint,” said Sam Hayes, SharesPost’s Co-Founder, EVP and GM, Marketplace.
Interest and demand in trading stock of privately held companies has skyrocketed in recent years. According to the Wall Street Journal earlier this month, SharesPost’s main competitor SecondMarket saw a 75% increase in transactions through the first 3 quarters of 2011, from the same period in 2010.
With Bloomberg Professional the clear market leader in providing real-time information to investors around the world, SharesPost gets a big stamp of legitimacy, and provides greater transparency in these markets.
“We think it’s very important to service institutional investors”, Hayes said. “We are the place that serious buyers and sellers go for information on venture backed privately held companies, and now that information will be accessible to 310,000 investors using the Bloomberg Terminal”.
With shares of Facebook and Twitter being traded using the SharesPost platform, this move could reduce speculation on IPO pricing and valuations when the companies decide to go public.