While some trends are unmistakable, the key is to identify them before the market does. Smart investors do that by leveraging data from private markets, which can identify trends by analyzing activity between IPOs and other key events.
Forge serves accredited seed and angel investors, employee shareholders, private companies, and institutional investors. It offers reports, tools, insights, and private market education.
Head of Data and Investment Solutions Howe Ng said that when a firm has enough price and transaction data for private markets, it can create indices. Then, it can measure market sentiment and performance. It becomes possible to design funds that track those indices.
“Then you’re getting closer to how you think about the public market, where you have lots of access and entry points through different products that are powered by data,” Ng said.
Ng said a key 2025 theme will continue to be how AI-based companies perform. The Magnificent Seven (Alphabet (Google), Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla) are deep into AI. Ng said AI prominently features in the Private Magnificent Seven (SpaceX, Stripe, OpenAI, Scale AI, Databricks, Rippling and Fanatics), too. Consider the value investors glean from data sources. Forge derives similar insights from private markets.
Want proof? As good as the Public Magnificent Seven has done over the past few months, the Private Magnificent Seven’s returns are more than three times stronger. Interest in these companies has driven the highest buy-side demand Forge has seen since tracking it.
AI is driving a resurgent IPO market. While ServiceTitan isn’t necessarily an AI name, it is an enterprise software firm. It went public soon after the election, beginning trading at $71 on its first day. It closed that day at $101 and has stayed strong.
“Last year, a lot of them peeter off,” Ng said. “Things are definitely getting better since it’s a great reset of the private market.”
Ng said the current theme is a tale of two cities, with companies separated into AI and non-AI camps. In December, Databricks raised a $10 billion Series J, valuing it at $62 billion. That’s easily found information.
What Forge saw underneath was private market activity that raised that valuation to $65 billion. That shows there’s no capital shortage. It also suggests companies might not consider going public until they are convinced of a favourable response.
President Donald Trump’s return to office has increased interest in cryptocurrencies. That coincides with several mainstream moves like cryptocurrency ETFs. Ng said he’s seeing more momentum around cryptocurrency exchanges.
For crypto to thrive, it’s going to need a solid foundation of infrastructure providers. Is there an under-the-radar play for such companies?
Ng said the importance of blockchain companies is recognized, but there isn’t much active fundraising by blockchain companies.
“A lot of money is flowing more into the AI-related companies,” Ng said.
With consistent activity around AI companies, there is a regular information flow, but Forge’s unique capabilities allow them to see more immediate secondary market actions.
“We can see that trend happening before the rest of the market,” Ng said.