Tim Draper unveils the XChange marketplace

As VCs look for liquidity, private-company stock exchanges are emerging on both coasts. Since the post-Enron regulation that doubled the time needed for startups to go public, VCs have been thirsty for liquidity. The recent pullback in funding from LPs has left the VC community even more parched.With fewer exit possibilities and less money to keep late-stage companies afloat, the venture capital ecosystem is in for a serious overhaul. But VCs are no strangers to rapid adaptation. The thirst for liquidity has driven an increase in second-market stock trading, most notoriously in the case of Facebook, whose stockholders have been busy trading shares on the not-so down-low.Some VCs see opportunity in the current cash-flow crunch. Tim Draper, whose various funds invest in over 500 startups, unveiled one of his latest investments, XChange, at ... [ Read more ]

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Vator TV | June 1, 2009

Tags:. .xchange. .pullback. .enron. .fewer. .thirsty