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Forge Global reported that private market valuations have reset significantly for companies last raising capital in 2021 or the first quarter of 2022.
According to its September Private Market Update, among 112 companies traded on the Forge marketplace, the average price discount compared to prior rounds is now 49 percent, with a median discount of 61 percent. This data indicates considerable downward pressure on private market pricing for this group of companies relative to their last fundraising rounds.
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Forge Global previously reported in July that its FPMI rose 9.3 percent while FAPMI fell 4.2 percent, due in part to a 36.6 percent decline in SpaceX valuation according to Forge Global: FPMI jumps 9.3 percent as SpaceX 36.6 percent decline drags FAPMI down 4.2 percent. Separately, Forge highlighted Bending Spoons' acquisitions of Airtable and Miro, both completed at lower valuations, marking a new phase for tech sector resets in Bending Spoons acquisition spree shapes next phase of Great Reset, Forge Global outlines. These recent developments provide further context for the significant valuation adjustments now seen in the private market.