Private Securities Marketplace, Forge Global, Reports that Private Market Is Showing Signs of Improvement as IPO Market Recovers

Forge Global has shared the latest Private Market Update with CI.

The report, prepared by global private securities marketplace, Forge Global (NYSE: FRGE), includes key insights based on the most current developments. The Forge Private Market Index, which tracks the most liquid private companies on Forge, “gained 1.59% during the three month period ending in August, indicating that the private market is showing signs of improvement as the IPO market rumbles back to life.”

Highlights from the report include:

  • Median discount companies on Forge traded to its last primary round improved to -53% in August
  • Companies in the 90th percentile traded at a 42% premium to their last primary funding round
  • Median bid/ask spread on IOIs fell to 12% in August, the lowest since January 2022
  • Number of unique companies with sell-side interest on Forge increased to 228 in August, an all time high
  • Percentage of buy-side IOIs fell slightly to 37.7% in August

Outside of capital markets, the private market continues “to show signs of a steady recovery.”

After a rough first half of the year, the Forge Private Market Index—a benchmark for actively traded private companies—turned positive “over the last three months, with a 1.59% gain during the three month period ending August 31, 2023.”

The number of issuers “with sell-side indications of interest (IOIs) in August 2023 on Forge Markets hit a record high, and the spread between buyers and sellers compressed to the narrowest band in 19 months.”

In the private primary fundraising markets, fintech company Ramp “announced a new $300 million fundraising round.”

While the company’s $5.8 billion valuation represents “a –28% discount from its previous high, Co-Founder and CEO Eric Glyman acknowledged that startups like Ramp are dealing with a new valuation environment compared to 2021 and need to adjust accordingly.”

It’s also a reminder “that quality companies can still raise money in today’s environment if they right-size the sky-high valuations that were achieved in the last two years but may no longer apply.”

To access the complete report, check here.

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