Forge Global (FRGE) Piper Sandler Global Exchange and Trading Conference 2024 summary

Business overview and market positioning

• Operates as a private securities marketplace with trading, data, and custodial services as core pillars.

• Data business provides insights and pricing discovery for private markets.

• Custodial services cater to investors interested in holding non-traded securities.

Market environment and recent trends

• Private markets have experienced a significant valuation reset since 2021, with 30% of tracked companies now trading at or above their last rounds.

• Bid-ask spreads have narrowed from 28-30% to 8.8%, indicating healthier market conditions.

• Four consecutive quarters of revenue growth and improved trading volumes have been observed.

• Optimism is tied to the reopening of the IPO window, which is expected to further drive volumes.

Product innovation and growth strategy

• Significant investment in next-generation trading and data infrastructure over the past two years.

• Launch of Forge Pro, combining deep order book data with order management, has received positive early feedback.

• Introduction of an investable index product, allowing access to a basket of 60 liquid, cap-weighted private companies.

• Plans to expand index products to non-accredited investors within 12 months, aiming to broaden market participation.