The Private Market Magnificent 7

Outsized Performance* with Potential Room to Run
Seven companies that led the private market through the Great Reset: SpaceX, Stripe, OpenAI, Scale AI, Databricks, Rippling and Fanatics

Magnificent 7 – Public vs. Private Performance

The Private Magnificent 7 represent a group of private, venture-backed, late-stage companies that have demonstrated resilience throughout the Great Reset and propped up the performance of the Private Market over the recent market cycle, much like their public market counterparts.

Performance of Hypothetical $10,000

Inception: 8/31/23

Private Magnificent 7
Public Magnificent 7
QQQ
Returns 3M YTD 1Y
Private Magnificent 7 20.1% 40.3% 78.3%
Public Magnificent 7 20.3% 54.2% 58.7%

*Private Magnificent 7 data from Forge Data
Public Magnificent 7 data from NASDAQ

The Private Magnificent 7 represents a wide cross-section of industries, with subsectors ranging from Data Intelligence to Payments to HR and more.

SpaceX

SpaceX

Founded in 2002, SpaceX is the global leader in satellite launches (responsible for over 60% of all commercial launches worldwide) and is the most valuable private company in the United States.1 In the last five years, SpaceX has been a force to be reckoned with, raising +$6B and growing their valuation by more than six times.2 3 4 5 6

OpenAI

OpenAI

OpenAI is a developer of an artificial intelligence-based research and deployment platform. After launching their flagship product ChatGPT in November 2022, OpenAI acquired over 1 million users in under a week.7 In the two years, their valuation has skyrocketed, with their primary funding valuation increasing from $28B to $80B, raising over $10B.8 9 10

Stripe

Stripe

Stripe, recently valued at $65B, is a global powerhouse in online payments, processing billions of dollars annually across 100+ countries.11 12 With competitors like Square at $39B and PayPal at $74B, Stripe stands out as a major player in the fintech space.13 14

Databricks

Databricks

Databricks is a data, analytics and artificial intelligence company that powers over 60% of the Fortune 500 companies.15 16 Since 2019, Databricks has secured five consecutive up rounds, securing $4B and catapulting their valuation 15.5x to around $40B—putting it neck and neck with Snowflake's $37B market cap.17 18 Databricks was founded by the innovative minds behind Apache Spark, the game-changing engine that powers big data analytics.

Fanatics

Fanatics

Fanatics is a global digital sports platform for purchasing team apparel, jerseys, headwear and hardgoods. Operating multi-channel commerce for the world's biggest sports brands, Fanatics holds exclusive licensing deals with major sports leagues like the NFL, NBA, MLB, NHL, and over 150 college teams.19 20 With five consecutive up funding rounds in the last five years, they raised over $3B and increased their valuation five-fold.21 22 23 24

Scale AI

Scale AI

Scale AI provides high quality training data for AI applications, designed to accelerate the development of AI models. Scale AI’s customers include some of the biggest names in tech, like OpenAI, NVIDIA, and Microsoft.25 These companies rely on Scale AI to process massive datasets, which are critical for advancing cutting-edge AI applications. With four consecutive up rounds in the last five years, Scale AI raised ~$1.5B and increased their valuation 13 times.26

Rippling

Rippling

Rippling is a provider of IT and HR solutions, designed to enable companies of less than 2,000 employees to quickly onboard a new employee and set up their payroll, health insurance, work computer, and third-party apps like Gmail, Microsoft Office, and Slack. With five consecutive up rounds in the last five years, Rippling raised about $1B and increased their valuation by over 42 times.27

Both the public and private Magnificent 7 represent almost a quarter of their respective markets.

Key Takeaways
  • The Private Magnificent 7—SpaceX, Stripe, OpenAI, Scale AI, Databricks, Rippling and Fanatics—represent 25% of US unicorn valuations and comprises the most funded and best performing companies in the space. 28
  • Similar to the public markets, the private markets have select heavy weights that represent a disproportionate share of the market value.
  • These large players can have an outsized impact on the performance of the overall private market, as seen through the Forge Private Market Index (“FPMI”) and the Forge Accuidity Private Market Index (“FAPMI”).

Companies

Company Sector Subsector Forge Price Forge Price Valuation 1-Year Return 5-Year Return
SpaceXSpaceXIndustrialAerospace & Defense$118.59$211.77B39.45%449.03%
OpenAIOpenAIEnterprise SoftwareData Intelligence$295.05$171.13B511.18%
StripeStripeFinTechPayments$25.00$62.10B6.01%43.38%
DatabricksDatabricksEnterprise SoftwareData Intelligence$87.45$51.65B18.98%510.85%
FanaticsFanaticsConsumer & LifestyleClothing, Fashion, Beauty & Apparel$42.00$17.09B-26.89%196.40%
RipplingRipplingEnterprise SoftwareHuman Resources$48.48$14.87B64.90%3,206.35%
Scale AIScale AIEnterprise SoftwareData Intelligence$14.72$13.97B54.14%910.92%
Data updated daily

FAQs

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What is the Private Magnificent 7?

The Private Magnificent 7 represent a group of private, venture-backed, late-stage companies that have demonstrated resilience throughout the Great Reset and propped up the performance of the Private Market over the recent market cycle, much like their public market counterparts.

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Does the Private Magnificent 7 affect Forge indices?

Most of the Private Magnificent 7 are in the Forge indices. Their price performance will have an impact, but the degree of impact is dependent on the weighting scheme of the index (generally less in the equally weighted index and more in the cap weighted index).

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How can you invest in the Private Magnificent 7?

Currently, accredited investors can invest in all or a selective set of the Magnificent 7 companies through the Forge platform, subject to availability.

Qualified Purchasers can invest in The Accuidity Megacorn Fund that seeks to track the Forge Accuidity Private Market Index – which offers low-cost exposure to a broader and more diversified set of private companies. The Index includes 6 of the Magnificent 7 stocks, OpenAI being the outlier.

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Why were these companies selected to be included in the Private Magnificent 7?

The methodology for determining the Private Magnificent 7 is based on implied valuation, performance, brand equity, and liquidity.

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Why aren’t ByteDance, Epic Games, Shein or other large pre-IPO companies included in this list? 

Inclusion in the Private Magnificent 7 depends on multiple factors and the chosen companies were outperformers across most or all categories. Additionally, there are certain companies, like Bytedance and Shein, that are not US-based companies which was a criteria for inclusion.

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1 National Herald, 07/17/2023

2 Forge Data, as of 07/31/2024

3 SEC, 02/23/2021

4 SEC, 04/14/2021

5 SEC, 12/29/2021

6 SEC, 06/13/2022

7 Yahoo Finance, 12/09/2022

8 Bloomberg, 02/23/2023

9 Reuters, 02/16/2024

10 TechCrunch, 04/28/2023

11 TechCrunch, 02/28/2024

12 Stripe

13 Yahoo Finance, as of 09/4/2024

14 Yahoo Finance, as of 09/4/2024

15 Databricks, 06/12/2024

16 Databricks

17 Forge Data, as of 07/31/2024

18 Yahoo Finance, as of 09/4/2024

19 CNBC, 04/06/2022

20 Fanatics, 02/03/2024

21 Forge Data, as of 07/31/2024

22 SEC, 12/22/2022

23 SEC, 12/22/2022

24 SEC, 09/10/2021

25 Scale AI

26 Forge Data, as of 07/31/2024

27 Forge Data, as of 07/31/2024

28 Forge Data, as of 07/31/2024

Disclosures

Criteria for companies to be included in the Private Magnificent 7 include a minimum implied valuation of $10B, secondary market liquidity, brand awareness, and relative price performance.

All trademarks, logos and/or names are the property of their respective owners. All such names, logos, and trademarks shown are for identification purposes only. Use of these names and trademarks do not imply any affiliation or endorsement. 

All rights reserved by Forge Global Holdings, Inc (“FGHI”), and its affiliates, Forge Global, Inc (“Forge”), Forge Securities LLC (“FSEC”), Forge Global Advisors LLC (“FGA”), Forge Data LLC (“Forge Data”). Investing in private company securities is not suitable for all investors, is highly speculative, is high risk, and you should be prepared to withstand a total loss of your investment. Private company securities are highly illiquid and there is no guarantee that a market will develop for such securities. Each investment carries its own risks, and you should conduct your own due diligence regarding the investment, including obtaining independent professional advice. Past performance is not indicative of future results. This is not a recommendation, offer, solicitation of an offer, or advice to buy or sell securities by “FSEC” or any of its affiliates, nor an offer of brokerage services in any jurisdiction where FSEC is not permitted to offer brokerage services. Registered representatives of FSEC do not (1) advise any party on the merits of a particular transaction; (2) assist in the determination of fair value of any security; or (3) provide legal, tax, or transactional advisory services. Securities and investments are offered only to customers of FSEC, a registered broker-dealer and member FINRA & SIPC. Securities referenced in this article may be offered by FSEC, and certain Forge affiliates may act as principals in such transactions. See Forge and its affiliates’ Disclosure Library for additional disclosures (Disclaimers & Disclosures and Form CRS) for additional disclosures.  

Forge Price™ is calculated and disseminated by Forge Data. All rights reserved. Forge Price™ is designed to reflect the up-to-date price performance of venture-backed, late-stage companies. Forge Price™ is determined based on a proprietary model incorporating the pricing inputs from primary founding round information and secondary market transactions, including indications of interest (IOIs). Secondary market transactions are sourced from Forge Securities LLC (an affiliate of Forge Data), a leading market platform, and data collected from other private market trading platforms. The Forge Price™ is a mark of Forge Data. The Forge Price™ is solely for informational purposes and is based upon information from sources believed to be reliable, however Forge Data makes no assurance as to the accuracy or reliability of this data. Forge Data is not an investment adviser and makes no representation regarding the advisability of investing in any asset or asset class. The Forge Price™ may rely on a very limited number of trade and/or IOI inputs in its calculation. Neither reference to company names, nor calculation of Forge Price™ for a particular company(ies) implies any affiliation between Forge or its affiliates and any company, any endorsement or sponsorship of Forge or its affiliates by any company or vice versa, or any partnership, joint venture or other commercial relationship between Forge or its affiliates and any company. Rights with respect to any company marks referred to herein are, as between Forge and its affiliates and such company, owned by the company. 

To learn more about the Forge Private Market Index, please visit Forge Private Market Index Disclaimers & Acknowledgments where you can access comprehensive information and detailed terms and conditions.

To learn more about the Forge Accuidity Private Market Index, please visit Forge Accuidity Private Market Index where you can access comprehensive information and detailed terms and conditions.