Unicorn investments may become accessible to retail investors.
A CEO of an alternative trading platform aims to transform private equity investing to address the slowing IPO market.
This spring, Kelly Rodriques from Forge Global collaborated with Accuidity to introduce the Forge Accuidity Private Market Index.
The ultimate goal: Give more investors easier access to unicorns.
"Rodriques stated on CNBC's "ETF Edge" that this is a major financial innovation currently taking place, and there is a future where index products and other financial innovations will enable every investor to participate."
The Forge Accuidity Private Market Index comprises 60 private companies, including SpaceX, Stripe, and Epic Games, according to Forge Global's website. However, access to this index is currently restricted to everyday investors.
Rodriques stated that the regulations require a minimum net worth to be accredited.
While institutional investors and high net worth individuals can purchase shares on Forge's platform, anyone, regardless of accreditation, can sell their shares of private companies on the platform. Nevertheless, the companies still retain the right to reject transactions on the platform.
Rodriques hopes as interest in private investing increases, those regulations will shift.
"Soon, nonaccredited investors will have the ability to make bets on a basket of index stocks with 60 to 70 names and thematics, just like in the public market, which will greatly expand opportunities," he stated.
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