Forge Global is an innovative global marketplace for buying and selling pre-IPO and limited-market private company shares. It provides a platform that allows investors and shareholders to connect and transact in a secure and regulated environment. By facilitating secondary market transactions for private company shares, Forge Global offers liquidity to private company shareholders and alternative investment opportunities to investors.
Overview
Forge Global, formerly known as SharesPost, was founded in 2009 with the goal of addressing the liquidity gap that exists for private company shares. Many companies choose to stay private for extended periods of time, resulting in limited avenues for shareholders to sell their shares and investors to gain access to such investments. Forge Global aims to bridge this gap by creating a streamlined and transparent marketplace that caters to the unique characteristics of private company shares.
Advantages
a) Liquidity for Private Company Shares: Forge Global provides a much-needed solution for shareholders of private companies who want to sell their shares before the company goes public. By allowing investors to buy and sell shares in private companies, Forge Global creates liquidity, which can be especially valuable for early employees, angel investors, and venture capital firms.
b) Access to Alternative Investments: Investing in private companies can offer diversification and potentially higher returns compared to traditional public market investments. Forge Global enables accredited investors to access and invest in promising early-stage companies, providing an opportunity to participate in the growth potential of private businesses.
c) Efficient and Secure Transactions: Forge Global ensures that all transactions on its platform are executed in a secure and compliant manner. The marketplace follows rigorous regulatory procedures to ensure the protection of investors’ interests and compliance with applicable lAWS and regulations.
Applications
a) Shareholders and Employees of Private Companies: Forge Global caters to shareholders and employees of private companies who want to monetize their equity holdings or exercise their stock options. It allows them to unlock the value of their shares without having to wait for an IPO or acquisition event.
b) Accredited Investors: Forge Global provides accredited investors with an opportunity to diversify their investment portfoliOS by investing in private companies. It allows them to access potentially high-growth businesses and participate in the early stages of innovative companies.
Conclusion
Forge Global serves as a catalyst for unlocking liquidity in the private company shares market, offering a secure and efficient platform for investors and shareholders. By leveraging its expertise and technology, Forge Global has successfully created an ecosystem that benefits both buyers and sellers of private company shares, fostering growth in the overall private investment landscape. With its commitment to compliance and innovation, Forge Global continues to play a crucial role in facilitating secondary market transactions and expanding access to alternative investments in the information technology sector.