Crowdfunding platform SyndicateRoom has revealed a new tie-up with the London Stock Exchange (LSE) that will allow crowdfunding investors to participate in initial public offerings (IPOs) and placings on the main market of the LSE and AIM.
The Cambridge-based equity crowdfunding platform, which is regulated by the Financial Conduct Authority (FCA) and has facilitated almost £50m in investments to date, announced today that it had secured “intermediary status” with the LSE, making it the first crowdfunding firm to join the public markets.
“The launch of SyndicateRoom’s public equity capability means individual investors will be placed in the same position as professionals, with the ability to participate in the IPO market and the opportunity to benefit from the same discounts for new equity issues,” the company said in a statement.
“SyndicateRoom has already built a large member base of online crowdfunding investors, helping to create a new equity-owning class – the mass affluent,” said Goncalo de Vasconcelos, the platform’s chief executive and co-founder. “We are now seeking to democratise access to the public market, widening the reach of IPO discounts and putting the public back into IPO.
“SyndicateRoom’s move into the public equity market is another step in the evolution of the London Stock Exchange providing capital to growth companies, now with greater participation from individual investors.”
The platform's first test on the public markets will come with the IPO of HealthCare Royalty Trust, a healthcare investment vehicle that is looking to raise £200m when it lists later this month.