Private Market Update: October 2020 - Forge Global
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Private Market Update: October 2020
CONFIDENTIAL
Private Market Overview
Tech Unicorns Steamroll into the Public Markets
Last 3 Month Forge Platform Activity Against Public Equity Market
• As expected, the month of September was flurried with new listings with five of the seven tech unicorns
on our watchlist taking to the public tracks
User Indications of Interest(1) vs. S&P 500, Week Ending
• On September 16th, Snowflake Computing raised nearly $3.4B in their public market debut making it the Indexed: June 21st = 100
300 3,600
largest software IPO in history. After setting their pricing guidance at $100 to $110, the Company
Indexed Number of Indications of
ultimately sold 28M shares at $120 and later opened trading at $235
S&P 500 Level
225 3,400
• Unity and Sumo Logic’s IPOs came the days following Snowflake with both companies also able to price 150 3,200
their offerings above their respective ranges
Interest
75 3,000
• After over a year of dormancy, the direct listing structure was put back to the test by both Palantir and
Asana on the same day 0 2,800
27-Jun 11-Jul 25-Jul 8-Aug 22-Aug 5-Sep 19-Sep
• Airbnb and Wish are the two remaining companies with outstanding preliminary filings, albeit
confidential. With the presidential election on the horizon and both companies having yet to publish S&P 500* (RHS) Indication of Sell Interest Indication of Buy Interest
their S-1s publicly, it is becoming increasingly likely to be post-election
Monthly Summary July August September
Buy Interest as % of Total Platform Interest 83% 88% 88%
Forge Platform Activity Continues to Surge Sell Interest as % of Total Platform Interest 17% 12% 12%
Number of Unique Issuers 247 258 315
• For the third month in a row, activity on the Forge platform in September reached 2020 highs
• Even with many sought after companies taking to the public markets, investor activity on the Forge Year-over-Year VC Private Funding
platform in September, measured by the number of indications of interest placed, still topped August
Summary ($M)
highs by 25%, with the numbers of issuers of interest growing by 22% Year- over-Year VC Private Funding ($M) (2) 2018 YTD 77,878
$15,000 2019 YTD 84,427
YTD 82,951
September Sees Record Activity From VCs in the Primary Market $12,000
• VC firms pumped in $11.8B of new capital into private companies in the month of September making it $9,000
the largest monthly inflow of capital into the U.S private markets in the last three years. The FinTech and
BioTech sectors accounted for ~25% of that activity $6,000
• Affirm, Chime, and Robinhood were the headliners for the FinTech space pulling in $500M, $485M, and $3,000
$460M, respectively. Chime’s Series F inaugurated them into the decacorn universe as it reportedly
$0
valued the neobank at ~$14.5B valuation. Meanwhile, Robinhood added $460M to their Series G round Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
which was initially announced in August
2017 2018 2019 2020
• On the BioTech side, XtalPi, Zymergen, and Freenome all got $250M+ of fresh capital Annual Summary 2017 2018 2019 2020
(1) Indication of Interest defined as a user manually placing a non-binding bid or ask on the Forge platform. Indexed values are based
Total Deal Volume ($M) 67,296 108,301 108,498 82,951
on the unique number of indications of interest, not the total dollar volume # of Deals 1,806 2,307 2,442 1,690
(2) Includes U.S. issuer VC-backed deals with an investment amount of $10M or greater Average Deal Size ($M) 37 47 44 49
Sources: Forge Global, Yahoo Finance, TechCrunch, PitchBook (Data has not been reviewed by PitchBook analysts) – As of 9/30/2020
*Note: Public market data as of 9/30/2020
Copyright © 2020 Forge Global, Inc. All rights reserved. For more info contact: info@forgeglobal.com (415) 881-1612 415 Mission St, San Francisco, CA 94105 – 55th Floor 2CONFIDENTIAL
Tech IPO Landscape
Historical Returns Performance of Largest VC-Backed Tech IPOs in Since 2019 (1)
2018 2019 Last 3 Months Last Month Public Market Performance Latest Private Market Activity
Return If
NASDAQ -5.3% 34.6% 10.0% -6.5% Current Last 3 Last Funding
Company IPO Date Since IPO Series Invested Pre-
Stock Price Months Month Round(2)
S&P 500 -7.0% 28.7% 7.9% -4.6% IPO (3)
Announced / In Progress (Confidentially Filed: 31-Aug-20) Aug-19 H -
Renaissance IPO ETF (5) -18.1% 33.6% 28.0% 1.2%
Dec-16 F -
Announced / In Progress (Confidentially Filed: 19-Aug-20)
Market information as of 9/30/20
30-Sep-20 $28.80 6.7% - - Nov-18 E 251.6%
30-Sep-20 $9.50 -5.0% - - Jan-16 K -16.5%
Last 24 Months Indexed Month-Over-Month Performance
18-Sep-20 $87.28 67.8% - - May-19 E 296.7%
190 17-Sep-20 $21.80 -0.9% - - May-19 G 97.8%
Index: Sep 4th, 2018 = 100 16-Sep-20 $251.00 109.2% - - Feb-20 G 547.4%
2-Jul-20 $49.72 71.4% - -14.5% Apr-19 D 17.8%
170 9-Jun-20 $51.78 135.4% -0.7% -20.4% Dec-18 G 188.5%
31-Jan-20 $28.36 102.6% -21.9% -2.7% Aug-18 I 128.2%
12-Dec-19 $100.31 356.0% 11.2% 0.0% Jan-18 G 1955.5%
150
26-Sep-19 $99.24 242.2% 71.8% 30.6% Aug-18 F 587.3%
19-Sep-19 $102.16 278.4% 17.5% 23.1% Dec-15 D 1384.9%
13-Sep-19 $41.06 173.7% 14.2% 3.6% Sep-15 D 569.8%
130
25-Jul-19 $140.05 400.2% 86.3% 5.3% Apr-18 E 3274.7%
19-Jul-19 $27.42 30.6% 8.6% -22.5% Feb-19 F 82.8%
110 28-Jun-19 $14.47 -48.3% 13.1% -11.6% Mar-19 H 110.6%
20-Jun-19 $26.86 -30.2% -13.6% -15.8% Aug-18 H 125.5%
12-Jun-19 $137.32 303.9% 36.9% 15.7% Jun-18 E 734.3%
90 17-May-19 $93.68 485.5% 10.0% -1.0% Jul-18 F 1733.3%
10-May-19 $36.48 -18.9% 17.4% 7.9% Dec-18 G -25.2%
2-May-19 $166.06 564.2% 23.9% 26.7% Nov-18 H 928.2%
70 18-Apr-19 $41.51 118.5% 87.2% 17.5% Jun-17 H 92.7%
Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 18-Apr-19 $470.11 1205.9% 85.4% 57.1% Jan-17 D 12464.7%
11-Apr-19 $27.11 13.0% -5.3% -11.7% Sep-18 D 58.8%
NASDAQ S&P 500 Renaissance IPO ETF Active on Forge platform prior to IPO (4)
Sources: PitchBook (Data has not been reviewed by PitchBook analysts), Yahoo Finance
29-Mar-19 $27.55 -61.7% -16.5% -10.5% Sep-18 I -41.8%
(1) Includes all IPOs issued in USD by formerly VC-backed TMT, SaaS, E-Commerce, or FoodTech companies with a pre-money valuation of $1B or greater Market information as of 9/30/20 Averages 187.5% 23.6% 4.1% 1064.5%
(2) Latest funding round based on latest investment round leading up to the Initial Public Offering when price per share figures are publicly disclosed
(3) Return based on current market price and the preferred share price of the latest investment round leading up to the IPO when the figure is publicly disclosed Active on Forge platform (4)
(4) Active on Forge platform defined as one completed trade or over $1 million of buy or sell side interest prior to priced public filing
(5) “The Renaissance IPO ETF reflects approximately the top 80% of newly public companies based on full market capitalization, is weighted by free float capitalization and imposes a 10% cap on large constituents” (renaissancecapital.com)
Copyright © 2020 Forge Global, Inc. All rights reserved. For more info contact: info@forgeglobal.com (415) 881-1612
415 Mission St, San Francisco, CA 94105 – 55th Floor 3CONFIDENTIAL
Fundraising Activity Summary
LTM Funding by Stage ($M)
$14,000 $60
$10,500 $45
$7,000 $30
$3,500 $15
$0 $0
Oct '19 Nov '19 Dec '19 Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 Jul '20 Aug '20 Sep '20
Seed - Series C Series D - F Series G + Other Average Deal Size (RHS)
Largest 10 Primary Financings in Last 60 Days By Investment Amount (2)
Company
Life and Health Commercial/Profession
Primary Industry Aerospace and Defense Consumer Finance Financial Software Financial Software Application Software Drug Discovery Biotechnology Biotechnology
Insurance al Insurance
Deal Date 18-Aug-20 22-Sep-20 17-Sep-20 18-Sep-20 23-Sep-20 16-Sep-20 28-Sep-20 08-Sep-20 26-Aug-20 23-Sep-20
Series - E G F G C C D C D
Investment Amount ($M) 1,901 500 500 485 460 450 319 300 270 250
Post-Money Valuation
46,000 - - 14,500 11,700 - - 2,050 1,120 2,250
($M)
Morningside Ventures,
Durable Capital, Bain Capital,
Lead Investor(s) - - - - KKR PICC Capital, Baillie Gifford CapitalG
GIC Perceptive Advisors
SoftBank
Active on Forge platform (1)
Source: PitchBook (Data has not been reviewed by PitchBook analysts) – As of 9/30/2020
Note: includes U.S. issuer VC-backed deals with an investment amount of $10M or greater
(1) Active on Forge platform defined as one completed trade or over $1 million of buy or sell side interest
(2) Source: PitchBook and other publicly available news outlets
Copyright © 2020 Forge Global, Inc. All rights reserved. For more info contact: info@forgeglobal.com (415) 881-1612 415 Mission St, San Francisco, CA 94105 – 55th Floor 4CONFIDENTIAL
Primary Funding Overview
A Focus Towards Profitability
Total Raised by Business Status ($M)
$30,000
$24,640 $25,334
$23,551
$18,648
$20,000
$10,000
$3,881
$1,986 $2,355 $1,252
$0
Generating Revenue Profitable
Q4 '19 Q1 '20 Q2 '20 Q3 '20
Quarterly Top 10 Industries of Interest
Q3 '20 Funding by Industry Q2 '20 Funding by Industry
Business/Productivity Software Business/Productivity Software
4% 4% 3% 3%
4% Drug Discovery 5% Biotechnology
4%
22% Financial Software Financial Software
4% 6% 23%
Aerospace and Defense Drug Discovery
Biotechnology 6% Automotive
9%
Network Management Software 7% Network Management Software
21% Consumer Finance 18% Other Healthcare Technology Systems
13% 13%
Other Healthcare Technology Systems Real Estate Services (B2C)
15% Internet Retail 16% Horticulture
Therapeutic Devices Electronic Equipment and Instruments
Source: PitchBook (Data has not been reviewed by PitchBook analysts) – As of 9/30/2020
Note: Includes U.S. issuer VC-backed deals with an investment amount of $10M or greater
Copyright © 2020 Forge Global, Inc. All rights reserved. For more info contact: info@forgeglobal.com (415) 881-1612 415 Mission St, San Francisco, CA 94105 – 55th Floor 5CONFIDENTIAL
Growing Unicorn Universe
Companies That Have Surpassed a $1B Post-Money Valuation in the Last 3-Months
Series D - $1.7B Series C - $1.2B Series D - $2.2B Series E - $1.8B Series A - $1.0B Series D - $2.1B Series E - $1.4B Series B - $1.1B Series D - $1.1B
28-Sep-20 24-Sep-20 23-Sep-20 23-Sep-20 21-Sep-20 8-Sep-20 1-Sep-20 26-Aug-20 25-Aug-20
Series C - $1.0B Series C - $1.5B Series C - $1.3B Series E - $1.2B
Series D - $2.2B Series D - $1.7B Series F - $1.7B Later Stage VC - $1.5B
28-Jul-20 27-Jul-20 15-Jul-20 14-Jul-20
12-Aug-20 12-Aug-20 4-Aug-20 29-Jul-20
With a Growing Unicorn Universe, Exit Opportunities Remain Limited
Active Unicorns vs. Exits ($B) (1)
100 $900,000
Aggregate Unicorn Valuation (RHS) Exit Value Per Year (RHS) New Unicorns Per Year Unicorn Exits Per Year $807,847
80
80 $720,000
62
60 53 $540,000
42 45
40 36 $60,640 $360,000
27
21 20
17 14 16
20 11 $180,000
9 8 7 7 7
4 5 5
1
0 $0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020*
Source: PitchBook (Data has not been reviewed by PitchBook analysts) – As of 9/30/2020
Note: includes U.S. issuer VC-backed deals with an investment amount of $10M of greater
(1) From PitchBook’s 2019 Unicorn Report - *Data as of 9/22/2020
Copyright © 2020 Forge Global, Inc. All rights reserved. For more info contact: info@forgeglobal.com (415) 881-1612 415 Mission St, San Francisco, CA 94105 – 55th Floor 6CONFIDENTIAL
Disclaimer
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