A look investment trends in private market activity by Forge institutional investors. Sally Mace, Principal at Forge Securities, discusses which sectors are seeing the most interest on the Forge platform.
So, Sally, these institutional investors that you're speaking with, what kinds of companies are they targeting? Maybe the sectors, the size of the company, or any other key fundamentals that they're currently looking for?
So, I think when you're trying to look at what companies buyers are targeting, it's relevant to the look at both the size of the business as well as the sector.
In terms of size, we're seeing institutional investors focused primarily on the largest segment of the market. So, companies with sort of the 6 to 10 year tenure, companies that have raised multiple rounds of traditional VC funding, and companies that are well positioned to be high quality, strong public businesses as well. Looking at, are they profitable? Are they close to profitability?
I'm hearing from a lot of investors as well that they're looking primarily above all at the quality of the businesses that they're investing in. When it comes to sector, we've seen sort of a more recent trend is focused on artificial intelligence and generative intelligence most recently.
We've also seen sort of a shift away from FinTech and consumer tech and more into sort of traditional SaaS businesses.
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.
To the extent information about or defining specific terms is provided herein, Forge makes no representations as to its accuracy and has no duty to update such information. Such information is based on Forge’s experience and the meanings and connotations of terms as Forge typically uses and interprets them. Others may construe such terms differently, and you should do your own research and consult with financial, legal and tax professionals regarding any such concepts included herein.
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. Forge Data LLC is an affiliate of Forge Global, Inc. and Forge Securities LLC.
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.