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Retail investors may soon have the opportunity to invest in unicorns

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Forge Global CEO Kelly Rodriques is aiming to revolutionize private equity investing in an attempt to address the stalling initial public offering market. Through a partnership with Accuidity, the Forge Accuidity Private Market Index was launched this spring with the goal of providing more investors easier access to unicorns – highly valued private companies. Rodriques believes that this initiative represents a significant financial innovation that has the potential to allow every investor to participate in private equity investing.

Consisting of 60 private companies including well-known firms such as SpaceX, Stripe, and Epic Games, the Forge Accuidity Private Market Index is currently only available to institutional investors and high net-worth individuals due to regulatory restrictions. While accredited investors have the ability to purchase shares, anyone has the opportunity to sell their shares of private companies on the platform. However, companies retain the right to decline transactions on the platform. Rodriques anticipates that as interest in private investing grows, regulations will evolve and eventually permit nonaccredited investors to participate in the market.

The ultimate vision is to establish a scenario in which individuals without high net worth can invest in a diversified portfolio of private companies, similar to how they can invest in public markets. By offering a basket of index stocks representing different themes, Rodriques believes that accessibility to private investing will significantly increase. This development could potentially open up opportunities for a wider range of investors to engage in private equity investing and benefit from the growth potential of promising private companies.

As the landscape of private markets continues to evolve and innovations like the Forge Accuidity Private Market Index gain momentum, there is optimism for a future where private equity investing becomes more inclusive and accessible to a broader range of investors. Rodriques remains hopeful that regulatory changes will support this shift towards democratizing private investing and offering a more diversified range of investment opportunities to individuals interested in participating in this asset class.

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