The Forge marketplace has nearly 400,000 registered users, including more than 123,000 accredited investors, the company said.
Forge Global has agreed to merge with Motive Capital Corp, a specialty acquisition company sponsored by subsidiaries of Motive Partners, to go public in a $ 2 billion transaction.
Once the transaction is completed, by Q4 2021 or Q1 2022, Forge will become a publicly traded company and be able to further expand its liquidity solutions, proprietary data and information, and dynamic market.
The private market operator helps companies, their employees and investors to trade private stocks. Employees can sell them, employers can reward shareholders with pre-IPO cash, and institutional investors can participate in the growth of private unicorns.
As demand for exposure to equities of private companies from individual and institutional investors continues to increase, Forge Global has been able to create a growing network effect with defensible competitive advantages.
The company said the coverage of private companies on the platform has been steadily increasing, with a 114% increase in the number of separate private companies traded between January 1, 2018 and June 30, 2021. Likewise, its customer base grew by 225% over the same period. .
The Forge marketplace has nearly 400,000 registered users, including more than 123,000 accredited investors, the company said. Private stocks have been traded in over 400 companies since its inception, accounting for over $ 10 billion in volume across 19,000 deals with buyers and sellers in 70 countries. Through its Forge Trust custody offering, the company has approximately $ 14 billion in assets under custody and approximately $ 600 million in cash for 1.9 million clients.
Kelly Rodriques, CEO of Forge Global, said: “We strongly believe that everyone should be able to participate in private markets, and we have strategically invested in developing technologies to harness what we believe to be an efficient and liquid market, connecting a large number of private companies, shareholders and investors.
“The trust and commitment demonstrated by Motive Capital Corp and other leading investors is a testament to our business model, the strength of our team and the enormous market opportunity we have before us. With this transaction, we will be even better positioned to accelerate our mission and bring innovation to private markets while delivering value to our shareholders. “
Blythe Masters, CEO of Motive Capital Corp, said: “Forge sits at the confluence of several megatrends that generate value in fintech: electronization and digitization of markets and services, growth of technology platform companies, openness architectures in wealth management. that expand access to new asset classes and rapid expansion of private capital. We had a hard time not liking this story.
The Combined Company is expected to have a fully diluted equity value on a pro forma basis of approximately $ 2.0 billion and earn approximately $ 532.5 million in gross proceeds to the Combined Company before payment of transaction fees and up to $ 100 million in cash matching.