Following the announcement of an expansion plan, shares of Forge Global Holdings Inc. (NYSE: FRGE) have gained 11.05% at $4.32 in Thursday’s session. During the past five days, Forge Global Holdings Inc. shares have fallen -6.71%; however, over the past month, they have fallen -18.28%.
What is FRGE planning?
In partnership with Deutsche Börse, Forge Global (FRGE) announced today that it is expanding internationally. A digital marketplace will be established by Forge Europe that will enable European companies and investors to access Forge’s US liquidity network, leveraging Forge technology, track record, and expertise, as well as market and regulatory expertise and Deutsche Börse’s network.
Investing in private growth companies is going to be easier with Forge Europe’s liquidity programs, private market data, and a marketplace that connects buyers and sellers. Recent years have seen tremendous growth in the European private market. Investors are increasingly seeking access to the thriving private market asset class, which boasts more than 650 unicorns and pre-unicorns with combined market caps of more than €625 billion.
There remains a lack of liquidity, an inability to access investors, a lack of transparency, and a lack of digitized transaction facilitation in Europe’s private markets as they mature. The Forge trading platform has revolutionized the private market ecosystem in the US with its proven trading technology and operational expertise, facilitating more than $12 billion of transactions, with European investors and companies contributing more than $600 million in trade volume.
After receiving regulatory approvals, Forge Europe will launch in Germany, the UK, and France by mid-2023. It will bring together private company shareholders, such as founders, employee shareholders, early-stage investors, and interested professional investors through an online platform enabled by technology.
What FRGE will be offering?
The initial product offering of Forge Europe is company liquidity solutions, which will facilitate direct transactions between buyers and sellers as well as efficiently structure, manage, and administer secondary transactions for private growth companies. Forge Global (FRGE) will offer global data and analysis on private markets to European participants. As part of its second phase, private market participants will have access to Forge Europe’s transaction marketplace through a digitized software solution.