FORGE GLOBAL HOLDINGS, INC. Accelerating Toward
the Private Market
Tipping Point
William Blair 44th Annual Growth Stock Conference
June 4th 2024
Disclaimer
Disclosures
This presentation has been prepared for use by Forge Global Holdings, Inc. ("Forge") for informational purposes only and may not be reproduced or redistributed, in whole or in
part, without the prior written consent of Forge. Forge does not make any representation or warranty as to the accuracy or completeness of the information contained in this presentation. The information in this presentation and any oral statements made in connection with this presentation is subject to change and is not intended to be all- inclusive or to form the basis of any investment decision in Forge. This presentation does not constitute either advice or a recommendation regarding any securities. You should consult your own legal, regulatory, tax, business, financial, and accounting advisors to the extent you deem necessary, and must make your own decisions and perform your own independent investment and analysis of an investment in Forge. This communication is restricted by law; it is not intended for distribution to, or use by any person in, any jurisdiction where such distribution or use would be contrary to local law or regulation. Neither this document nor the information contained herein was prepared, distributed, made available or otherwise used by Forge Securities LLC or Forge Global Advisors LLC or any of their associated persons and is not intended for their customers/potential customers or clients/potential clients, respectively.
Forward-Looking Statements
Certain statements in this presentation may constitute "forward-looking statements" within the meaning of the federal
securities laws. Forward-looking statements include, but are not limited to, statements regarding Forge's expectations, hopes, beliefs, intentions, or strategies regarding the future, including, without limitation, statements regarding: (i) the size,
demand, and growth potential of the markets for Forge's products and services and Forge's ability to serve those markets, (ii) the degree of market acceptance and adoption of Forge's products and services, (iii) Forge's ability to develop innovative products and services and compete with other companies engaged inthe financial services and technology industry, and (iv)
Forge's ability to attract and retain customers. In addition, any statements that refer to projections, forecasts, orother characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The
words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "strive," "would," and similar expressions mayidentify forward-looking statements,
but the absence of these words does not mean that statement is not forward looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Youshould carefully consider the risks and uncertaintiesdescribed in Forge's documents filed, or to be filed, with the SEC from time to time, including in its Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and Annual Reports on Form 10-K. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward- looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward- looking statements, and Forge assumes no obligation and does not intend to update or revise theseforward-looking statements, whether as a result of new information, future events, or otherwise. Forge does not give any assurance that it will achieve its expectations.
Copyright ©2024Forge Global, Inc. All rights reserved | 2 |
Disclaimer
Financial Data and Use of Projections and Illustrative Presentations
The financial information and operating metrics contained in this presentation are unaudited and do not conform to Regulation S-X. Such information and data may not be included in, may be adjusted in or may be presented differently in information filed or furnished by Forge with the SEC. You should read carefully and rely only on such information filed or furnished with the SEC, including any amendments and supplements thereto.
The financial projections, estimates, targets, and illustrative presentations in this presentation are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Forge's control. While allfinancial projections, estimates, targets, and illustrative presentations are necessarily speculative, Forge believes that the preparation of prospective or illustrative financial information involves increasingly higher levels of uncertainty the further out the projection, estimate, target, or illustrative presentation extends from the date of preparation. The assumptions and estimates underlying the projected, expected, or target results are inherently uncertain and are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the financial projections, estimates, and targets. The inclusion of financial projections, estimates, targets, and illustrative presentations in this presentation should not be regarded as an indication that Forge, or its representatives, considered or consider the financialprojections, estimates, targets, and illustrative presentations to be a reliable predictions of future events. Further, illustrative presentations are not necessarily based on management projections, estimates, expectations, or targets but are presented for illustrative purposes only. The projections were prepared in good faith by Forge's management and based on their reasonable best estimates and assumptions with respect to the expected future financial performance of Forge at the time such projections were prepared and speak only as of that time. Unless required to by applicable law, neither Forge, nor any of its respective affiliates intends to, update, revise, or correct the projections to reflect circumstances existing or arising after the date such projections were generated or to reflect the occurrence of future events, even in the event that any or all of the assumptions underlying the projections are shown to be in error or any of the projections otherwise would not be realized.
Copyright ©2024Forge Global, Inc. All rights reserved | 3 |
Disclaimer
Use of Non-GAAP Financial Metrics
This presentation may include certain non-GAAP financial measures (including on a forward-looking basis) such as Adjusted EBITDA. These non-GAAP measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP and should not be considered as an alternative to net income, operating income, or any other performance measures derived in accordance with GAAP. If applicable to this presentation, reconciliations of non-GAAP measures to their most directly comparable GAAP counterparts are included in the appendix to this presentation. Forge believes that these non-GAAP measures of financial results (including on a forward-
looking basis) provide useful supplemental information to investors about Forge. Forge's management uses forward-lookingnon-GAAP measures to evaluate Forge's projected
financials and operating performance. In addition, other companies may calculate non- GAAP measures differently, or may use other measures to calculate their financial performance, and therefore, Forge's non-GAAP measures may not be directly comparable to similarly titled measures of other companies.
Use of Other Data
The data contained herein is derived from various internal and external sources. All of the market data in the presentation involves a number of assumptions and limitations, and there can be no guarantee as to the accuracy or reliability of such assumptions. Further, no representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any projections or modeling or any other information contained herein. Any data on past performance or modeling contained herein is not an indication as to future performance. Forge assumes no obligation to update the information in this presentation.
Trademarks
This presentation contains trademarks, service marks, trade names, and copyrights of Forge and other companies, which are the property of their respective owners. The use or display of third parties' trademarks, service marks, trade names, or products inthis presentation is not intended to, and does not imply, a relationship with Forge or any of its respective affiliates, or an endorsement or sponsorship by or of Forge or such affiliates. Solely for convenience, some of the trademarks, service marks, trade names, and copyrights referred to in this presentation may be listed without the TM, SM, (c) or (r) symbols,but Forge will assert, to the fullest extent under applicable law, the right of the applicable owners, if any, to these trademarks, service marks, trade names, and copyrights.
Copyright ©2024Forge Global, Inc. All rights reserved | 4 |
Our vision and market opportunity
Kelly Rodriques
Chief Executive Officer
FinTech executive with more than 33 years of experience. Previously CEO of PENSCO (acq. NASDAQ:OPB), Totality (acq. NYSE:VZ) and Novo (acq. EPA:PUB)
Totality
Copyright ©2024Forge Global, Inc. All rights reserved | 5 |
Today, companies stay private longer and accrue more value along the way
Median Age of
Tech Companies at IPO (years) 1
15 years
9 years | |
2001 | 2022 |
Number and Market Cap of Unicorns
1200+ Unicorns | 13% CAGR |
$4T Market Cap
12073 | |
($3.8T) | |
260 2 | |
($0.9T) | |
2018 | 2022 |
Private Market
AUM 4,5
$13T | |
$7T | |
2020 | 2025E |
Disclaimer: Images provided are not current and anysecurities are shown for illustrative purposes only
1 Source: Initial Public Offerings: Median Age of IPOs Through 2023, Jay R. Ritter, Warrington College of Business, University of Florida, February 2, 2023.
- Source: BusinessToday: A Year of Unicorns; December, 24, 2018.
- Source: CB Insights, The Complete List Of Unicorn Companies; Dec.30, 2022
- Source: Competing for Growth, 2021 edition of the Wealth and Asset Management report by Oliver Wyman with Morgan Stanley.
- E = Estimated
Copyright ©2024Forge Global, Inc. All rights reserved | 6 |
Private companies can generate billions in value pre-IPO
In 12 years…
$49.6B of Value Created in Public Markets | $47B of Value Created in Private Markets |
1995 | 1997 | 2009 | 2008 | 2020 |
Company | IPO at $438M | Valuation Passes | Company | IPO at $47B |
Founded | Market Value | $50B | Founded | Market Value |
Copyright ©2024Forge Global, Inc. All rights reserved | 7 |
Creating an asset class with the potential for attractive returns
Index Level | Forge Private Market Index (FPMI) vs. Public Indices |
115
110
105
100
95
90
85
12/31/23 | 1/14/24 | 1/28/24 | 2/11/24 | 2/25/24 | 3/10/24 | 3/24/24 | 4/7/24 | 4/21/24 | 5/5/24 | 5/19/24 | |||||
FPMI | SPY | QQQ | |||||||||||||
FPMI | SPY | QQQ |
10.9%
10.3%
5.6%
Cumulative Return | 5.6% | 10.9% | 10.3% | |||
The performance of the Forge Private Market Index above does not represent the performance of any actual investment, as you cannot invest in | ||||||
Note: Forge Index does not include transaction costs of trading in / out of underlying positions, index history Jan 2024 through May 31, 2024 | the index, but rather reflects the hypothetical growth of an investment in a basket of securities based on the Index. Read additional disclaimers | |||||
Non-Forge Private Market Index data fromQuandl and Sharadar. | ||||||
Copyright ©2024Forge Global, Inc. All rights reserved | 8 |
Despite the opportunity, the private market has historically lacked…
Liquidity | Access | Transparency |
Lack of technology, volume, | Investment minimums can be | Lack of information, |
standardized processes and | prohibitively high and access to | disclosures and pricing |
documentation leads to an | private company shares is | intelligence creates |
inefficient and illiquid market | limited | uncertainty and reduces |
confidence in the market |
Copyright ©2024Forge Global, Inc. All rights reserved | 9 |
Forge creates mission critical infrastructure for private markets
Provides market participants | ||
the information, intelligence | Data | |
and insight to confidently | Trading | |
navigate, analyze and make | ||
investment decisions in the | ||
private market | ||
Custody |
Online trading platform that connects potential investors with private company shareholders and enables them to efficiently facilitate private share transactions
Non-depository trust company that enables clients to securely custody and manage non-liquid assets through a robust and user- friendly online portal
Copyright ©2024Forge Global, Inc. All rights reserved | 10 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Forge Global Holdings Inc. published this content on 09 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 June 2024 15:03:08 UTC.
