What happens when private market investors have quality data at their fingertips?
Unicorn births surged by 491% year-over-year in the second quarter of 2021 1, bringing the total number of global private market companies worth more than $1B to more than 800 as of September 2021. That list includes over 35 decacorns that are valued at over $10B, and one hectocorn (worth $100B+) in Chinese artificial intelligence company Bytedance that’s valued at $140B. 2
Not only are there more unicorns than ever before, but many of these companies are choosing to stay private longer to accumulate even greater value, which has investors lining up to gain earlier access to private market value creation.
However, historically, investors haven’t had adequate information to help them navigate investment decisions in the private markets. Quality data has been hard to come by and few have had access, which has made it difficult to have confidence in maximizing private market participation.
In other words, private market investors have blind spots. But that’s all changing.
With greater market intelligence fueling investment strategies, investors could more easily:
- Identify emerging trends and source deals
- Gain insight into transaction-level details across trades
- Understand which companies are trading at which price
- Analyze changes to equity ownership and valuation resulting from different exit scenarios
These newfound abilities ladder up to ultimately support private market investors in developing new investment strategies to maximize returns – and to minimize risk and accelerate decision-making and outcomes within the private markets.
With 11 years of proprietary private market data, Forge has developed a product that will help reduce blind spots and assist accredited investors in investing more intelligently.
Forge Intelligence is the first product from Forge Data – a first-of-its-kind cloud-based tool that gives private market investors greater visibility into the data they need so they can have more confidence in decision making that can impact portfolio management, benchmarking, valuation, and more.
Find more information or request a demo by visiting Forge Data here.
Forge Data LLC (“Forge Data”) provides its customers with certain data concerning securities of private companies through its stand-alone subscription-based platform. Forge Data is not a registered broker-dealer, investment adviser, or investment manager and does not offer investment advice or advise on the raising of capital through securities offerings, nor does it solicit, broker, close or otherwise facilitate transactions in secondary markets. All data is provided for information purposes only.
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.