Investing

Shares of Startups Are Turning Dirt Cheap, Attracting Venture Funds

  • Investment firms bolstering stakes in closely held companies
  • ‘It’s a sea change’ from a year ago, says EquityZen’s Haslett
Photographer: Carl Court/Getty Images
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It’s a bargain-hunter’s dream, and for sellers it’s sometimes the only good option left.

Secondary markets — where backers of closely held startups can sell their stakes to other investors — are drawing increasing interest from venture capital funds and other money managers seeking to snap up chunks of private companies on the cheap.