Private Market Update: May 2021
May 17, 2021

Private Market Update: May 2021

Forge Team

The exit pipeline remains strong with a growing interest in and popularity of cryptocurrency and FinTech companies alike, from both institutional and accredited investors and the growing crowd of retail investors. Here’s a look back at the last month and what to know moving forward.

New day, new tech IPO

The IPO market continues to persevere as Compass, Coinbase, Zymergen, and UiPath all hit the public markets in April, averaging north of a 25% return since their respective IPO dates.

Following in the footsteps of companies such as Spotify, Slack, Palantir and Roblox, Coinbase opted for a direct listing, which offers reduced hype cycles, less volatility, cost-effective methods that cut out underwriters, and usually, the ability to avoid lockups. This approach benefits shareholders and employees by allowing them to sell shares immediately at a market-based price.

The company’s highly anticipated exit did not disappoint. It’s market cap reached over $100 billion shortly after trading began in the public market. [1]

The exit pipeline remains robust as well. Streaming data platform Confluent and FinTech firm Blend Labs both filed for an IPO last month, as did Didi Chuxing, the Chinese ride-hailing giant. The Didi Chuxing IPO is anticipated to be one of the largest tech IPOs this year and one of the biggest Chinese IPOs in the U.S. since Alibaba listed on the New York Stock Exchange in 2014. [2]

Investor activity on the rise, FinTech at the forefront

Investor activity on the Forge platform increased over 30% month-over-month in April (measured by the number of indications of interest placed), while the unique issuer count narrowed as investor interest concentrated on certain well-known companies.

To no surprise, FinTech companies continue to dominate. With Coinbase’s exit last month, Kraken, a bitcoin and cryptocurrency exchange platform, had the highest number of bids placed on the Forge platform, followed by Robinhood.

The popularity of FinTech unicorns and newly public FinTech entities is only expected to rise, especially as they increasingly become an integral component in streamlining outdated systems and creating new opportunities. In short: we’ve only scratched the surface of what technology will do to radically transform financial systems for the benefit of businesses and consumers.

[1] TechCrunch

[2] CNBC

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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.

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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.