It was both refreshing and encouraging to read Roger Clarke’s call for more effective integration of retail investors into the IPO book-building process (and the financial ecosystem more generally). He compellingly argued the moral case for better inclusion of retail investors, and cited the important historical precedent that exists for doing so (long before technology – and platforms like our own – were making retail investor involvement in IPOs considerably easier and cheaper).
I would also add to this evidence a financial argument, too. It is logical that by involving a more diverse and publicly representative selection of investors in both the book-building phase of the IPO and the IPO itself, the investment bankers responsible for the floatation would inevitably better predict and manage aftermarket activity.
That today’s retail investors also tend to focus keenly on impact alongside financial returns, means their involvement will ensure the business community continues – and indeed accelerates – on its journey sustainably to benefit all its stakeholders: a crucial paradigm shift if we are to help solve some of society’s biggest problems.
I and everyone and Crowdcube fully endorse Clarke and the personal finance media’s call to facilitate retail inclusion when companies solicit investment. They have their foot in the door: the Government, regulators, industry and innovation need to fling it open.
Sam Lawson, Crowdcube