Tech start-up Tracxn Technologies Pvt. Ltd, a data-analytics provider has launched a second internet platform, the aim of which is to help investors of start-ups that have established themselves, to quit by selling their shares.
TracxnSecondary connects shareholders of private companies with Venture Capitalists (VC) or other institutional investors. The platform is a secondary marketplace which facilitates secondary transactions.
The start-up which had recently raise funds from the likes of Nandan Nilekani, Mohandas Pai and others, says that the platform, if it gains scale will increase the liquidity in the India start-up business.
According to media reports, Tracxn has plans to expand the platform to include start-up employees, who can use it to liquidate their stock options. Stock options are a key part of the compensation package for senior executives in some start-ups, especially among the highly valued ones such as Flipkart Ltd and Snapdeal (Jasper Infotech Pvt Ltd).
“(Angel investors) have been sitting on a very large pile of stock, which is very highly valued but still not liquid,” said Abhishek Goyal, co-founder, Tracxn. “Angels want to make more investments. The market is really attractive, (but) they’re all looking for liquidity. At the same time, there are a lot of international funds who want a small exposure to India. So there’s demand (for such a platform) on both sides,” he told livemint.com
Presently, the start-up analyses start-ups in India, the US and Southeast Asia in about 100 sectors, including enterprise infrastructure, enterprise applications, technology, consumer, mobile, digital marketing, health and education, and works with over 200 clients.