Wait a second, did we just end up in a Christopher Nolan movie scene? A pre-IPO market selling private company shares has chosen to pursue going public. Could that be right? That’s precisely what Forge Global is trying to do through a $2b SPAC merger with Motivate Capital (MOTV).
Forge provides a market-based solution to startups that don’t feel ready for an IPO but would still like to raise funds and allow employees to cash out before going public. The San-Francisco-based marketplace has over 400,000 active users, including 123,000 accredited investors. Since its founding in 2014, Forge has managed $10b worth of trades in more than 400 private companies. The SPAC transaction is expected to provide up to $532m in cash proceeds and $100m in cash consideration.
why it matters
If the SPAC deal follows through, Forge will become the first trading platform for private shares to go public. This move will pave the way for similar trading platforms to follow in Forge's footsteps.