Yesterday, SharesPost CEO David Weir and SecondMarket CEO Barry Silbert shared a panel at the Business Insider IGNITION 2011 conference. Unsurprisingly, both were asked what differentiate them. Here’s what came out of it:

SharesPost: according to Weir, SharesPost focused on building a platform with a focus on automation and transparency. The goal is to make transactions in private company stocks as transparent as possible, and Weir cites his company’s listing historical pricing and bid/ask data as an example of this (along with the delivery of historical data to Bloomberg terminals). Also, SharesPost helps companies raise ‘primary capital’.

SecondMarket: Silbert notes that ‘the two companies have completely different models.’ He adds, ‘Our customer is the company.’ SecondMarket only transacts in stocks, after having adapted its business model, to companies that opt in. A company can open a window in its stock, usually once a year, and they can control the process. Like SharesPost, SecondMarket claims that transparency is important and requires company disclosure of financials, risk factors and other information.

Of course, SharesPost does seek company approval in the trading of its stock, and it does allow a company to prohibit trading. But, a company doesn’t have to be involved in order for trading to take place.

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