Private Market Update: March 2021
March 31, 2021

Private Market Update: March 2021

Forge Team

Despite the public markets’ slight turn last month, there’s no slow down in sight for the IPO market, which remains strong with a growing, robust lineup of companies primed to exit. Here’s a look back at record-breaking activity in February and what to be aware of as we look ahead.

All eyes on SPACs

According to the Refinitiv Deals Intelligence report, 50 acquisitions by special purpose acquisition companies were announced globally during February 2021 – the highest monthly tally of all time. The combined value of these deals was a record-breaking $108.6 billion.

It’s unclear, however, if there are enough public-ready private companies to satisfy the deluge of SPAC capital seeking a home. The sheer volume of SPAC money that’s chasing private companies to acquire also means there’s a real risk that some SPAC mergers will end up going bust.

Time will tell how SPAC mergers perform over the year. But, as companies assess their potential pathways to the public market, it’s important to remember and consider all options (and the benefits and shortcomings of each).

Funding reaches new heights

Primary venture capitalist (VC) funding reached new heights, with February recording an impressive ~$19B in funding across 274 companies, surpassing January as the most active month for VCs in prior years. *

With unicorns like Coinbase, Stripe and Robinhood continuing to make waves (and headlines), FinTech was the most active vertical, overtaking automotive from January and accounting for nearly a third of the month’s funding at ~$4.4B (up over $3B from the month prior).

Renewed interest in legacy names

Investors also sought out legacy unicorns, UiPath and Databricks, as both companies raised massive funding rounds, which landed these two names as the top companies of interest on the Forge platform in February.

Databricks closed a $1B funding round at a reported ~$28B valuation led by Franklin Templeton Investments, and UiPath raised a $750M round led by Coatue Management and Alkeon Capital Management for an estimated ~$35B valuation – both 3x greater than their previous valuations, and both potentially pursuing a direct listing approach.

This makes Databricks and UiPath two of the five highest-valued U.S. unicorns in 2021, alongside SpaceX, Stripe, and Roblox.

* PitchBook Data, public market data as of 2/26/2021

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

The information and material presented in this article is provided for your informational purposes only and does not constitute an offer by Forge Global, Inc. Forge Securities LLC or any of its affiliates (collectively, "Forge") to sell, or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. An offer or solicitation can be made only through the delivery of final offering document(s) and purchase agreement and will be subject to the terms and conditions and risks delivered in such documents.

This article does not constitute an offer to provide investment advice or service. Registered representatives of Forge Securities LLC do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services. Securities referenced in this article may be offered by Forge Securities LLC, member FINRA/SIPC.

Forge Securities LLC is a wholly owned subsidiary of Forge Global, Inc. Certain affiliates may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

Register to Get Started
Please provide your first name.
Please provide your last name.
Please provide a valid email address.

By registering, you agree to the Forge Terms of Use. Already registered? Click here to log in

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

The information and material presented in this article is provided for your informational purposes only and does not constitute an offer by Forge Global, Inc. Forge Securities LLC or any of its affiliates (collectively, "Forge") to sell, or a solicitation of an offer to buy any securities and may not be used or relied upon in connection with any offer or sale of securities. An offer or solicitation can be made only through the delivery of final offering document(s) and purchase agreement and will be subject to the terms and conditions and risks delivered in such documents.

This article does not constitute an offer to provide investment advice or service. Registered representatives of Forge Securities LLC do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services. Securities referenced in this article may be offered by Forge Securities LLC, member FINRA/SIPC.

Forge Securities LLC is a wholly owned subsidiary of Forge Global, Inc. Certain affiliates may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.