Which private companies users invested the most in by the end of 2022? The shares of companies with a capitalization of over $10 billion (54% of all purchased securities) were in the most significant demand in 4Q 2022.
At the same time, the absolute majority of transactions (92%) concerned relatively young businesses — no older than 10 years. For comparison, in 2020, there were 50-60% of such transactions.
Why has the focus of investors shifted to younger startups? Forge analysts make two assumptions:
Many private companies aged 10+ years in 2020-21 went to IPO, and their share in the offer decreased,
Companies in the later stages of development are more dependent on volatility in the stock market, which is why investors shift their focus to earlier stages to mitigate risks.
Now let's discuss if you have such companies in your portfolio.
