Its the fact that NASDAC bought Second Market. LINK Besides all the other skill sets you need to have running a startup you are now a quasi underwriter. The biggest thing problem startup investors have is lack of liquidity. They are first in, they get diluted from future rounds, their preference goes away from later stage “last in, first out” investors. They are truly the saints of investing. And the saint’s let very tortured lives.
The fact that, in theory, NASDAC offers startup investors liquidity will increase the number of startup investors dramatically. It will be the old wild days of the penny stocks. LINK Wolf of Wall Street.
If you are a startup investor put some money on NASDAC. Its always good to hedge your startup bets with those who will participate but aren’t totally dependent on being a startup.