Imagine you are an angel investor (perhaps you are). Over the past few years you have made investments and lost a few. The problem today is that all of your other investments have plunged and your net worth is where it was when you graduated from university (hey, you are in good company... Warren Buffet lost $27 billion of his net worth last year according to Forbes). Still, in your portfolio of start-ups are some real solid, growing companies. If only there was an active market to take these things public or sell, giving you some much needed liquidity!

In a well timed attempt to help the poor downtrodden angels of the United States, Sharespost was unveiled this week, listing 200 private angel and venture backed companies that appear to be doing well in the marketplace (Twitter, Facebook and Tesla Motors are among the companies). The idea is that as a common stock holder, you can post your shares (minimum $25,000 worth) at a price and see if buyers will accept your contract. Similarly, buyers can post their wish to purchase at a price per share and see if sellers will comply. This is an extension of, and attempt to grease the skids for, a secondary market that can happen today by chance meeting over cocktails or over the phone. But it is not without complication. One of the main reasons private companies are not liquid is because the insiders don’t want it to be. Most start-ups I have been a part of (some 45 now since 1995) have tight restrictions on transfer of shares, in some cases, even requiring board approval. Sharespost claims (in their FAQs and Legal sections) that they can have you sign agreements to transfer shares that won’t contravene terms like Right of First Refusal and Right of First Offer. One other small issue... No Preferred shares are being offered. Why not? Why can’t the VCs (who typically create and own the Prefs) get a little of this action? Because Prefs are often convertible with conditions like 2 or 3 to 1 into common, liquidation preference and the nasty double-dip: dividend accrual.