Crowdcube has announced a landmark partnership with the London Stock Exchange in an attempt to give hundreds of thousands of individual investors the chance to invest in later-stage, high-growth private companies on the same terms as institutional investors.
The partnership uses the London Stock Exchange’s new Private Securities Market and Crowdcube’s platform to give investors the chance to buy shares in fast-growing private companies – opportunities that were once only available after an IPO.
Private companies are remaining private for longer, with many raising multiple late-stage rounds before listing publicly.
That trend has meant some of Europe’s most innovative firms were only accessible to venture capital and institutional backers, but this new partnership seeks to change that dynamic.
It also comes amid a time when London has seen many of its flagship firms delist from the stock market.
Diversified Energy is latest to shift primary listing from LSE to NYSE
“This partnership is a unique opportunity to enable private companies and investors to utilise the same infrastructure and technology that underpins the London Stock Exchange’s public markets, while leveraging Crowdcube’s experience as a leading private markets investment platform in the UK,” said Julia Hoggett, CEO of London Stock Exchange plc.
“We are delighted to be working together with Crowdcube as we advance our shared vision for a connected and inclusive funding continuum.”
Matt Cooper, Co-CEO of Crowdcube, added: “Our objectives in partnership with the London Stock Exchange are clear: to make the UK the most attractive place for private companies to scale, and to give as many investors as possible the chance to share in the value those companies create.”
For companies, the partnership offers a new way to increase shareholder bases, reward employees and turn loyal customers into stakeholders.
Meanwhile, investors will gain increased access and choice in an asset class that has previously been restricted to a select group.