SyndicateRoom brings crowd to £6.1m fundraise for cancer treatment company
Crowdfunding platform gives exclusive access to retail investors for share offer in AIM-listed company
- SyndicateRoom members participated in Scancell Holdings Plc share offer
- First and only crowdfunding platform to offer LSE placing to its members
- £6.1m funding round to support development of cancer treatments
- Retail investors given access to institutional discount of 16%
Cambridge, UK – 1 April 2016: SyndicateRoom, a leading UK crowdfunding platform, announces today that it was appointed as the single Distribution Agent for the successful fundraise by Scancell Holdings PLC “Scancell”. SyndicateRoom has pioneered an entirely new structure to facilitate the participation of its members in a discounted offer. This is the first time that a crowdfunding platform has given its members the opportunity to apply for new shares in an AIM listed company at the same discount as institutional investors.
On 9 March, Scancell announced a placing to Institutional Investors and an offer for new shares to existing shareholders. On 24 March SyndicateRoom members were invited to apply for shares under the offer. SyndicateRoom provided Scancell with an important and a valuable new source of retail investor demand. This pioneering structure will give companies access to previously untapped retail demand for primary capital raises. SyndicateRoom will continue to provide retail investors with access to discounts typically offered solely to institutional investors.
Over the past two years, over £16.5bn was raised on the London Stock Exchange via placings and IPOs, with an average 10% discount given. That means £1.65 billion of value has been given to the traditional City of London investment community. SyndicateRoom seeks to spread this benefit to a far wider range of investors. SyndicateRoom is the only alternative finance platform to provide its members with direct access to both public and private equity – meaning SyndicateRoom members can participate across the entire funding journey of growth businesses, from early-stage crowdfunding rounds through to high-growth IPOs and discounted placings.
SyndicateRoom pioneered the investor-led equity crowdfunding model, which made it possible for the crowd to invest alongside angel investors and on the same economic terms. The company has collaborated with leading industry organisations, such as Gust (the largest angel investment platform in the world) and Wayra (a leading startup accelerator), to bring its members the best deals and, most recently, by becoming the first and only crowdfunding platform to give members access to public markets.
SyndicateRoom’s strong track record in healthcare
The announcement today follows SyndicateRoom recent approved intermediary status for the £200m premium segment IPO of HealthCare Royalty Trust Plc, and the company has a strong track record in healthcare investments. The following raises were made through SyndicateRoom’s platform:
- In March 2016, cell research business Axol Bioscience raised funds to support further product growth and international expansion
- In February 2016, e-Patient Network completed a fundraise to help source patients with rare diseases for clinical trials while simultaneously providing a support resource for both patients and families
- In November 2015, Check4Cancer raised funds to drive top line growth through brand building and customer acquisition
- In December 2014, Lightpoint Medical raised funds to bring its two lead imaging products to the EU and US markets
- In August 2014, Oval Medical Technologies raised funds to manufacture a pilot tool for its drug-device combination study
- In May 2014, Fertility Focus’ first funding round was successfully completed to invest in marketing for its fertility monitor
Gonçalo de Vasconcelos, CEO and Co-Founder of SyndicateRoom, said: “SyndicateRoom was built on the fundamental belief that everyone should have equal access to investment opportunities, and that individual investors should get the same deal as the professionals. We’ve challenged City conventions by allowing crowdfunders to participate in a company’s offer of shares on equal terms to large institutional investors – and it will be for the benefit of individuals and companies across the UK who are confronting society’s most important challenges such as Scancell’s development of cancer treatments. “
SyndicateRoom’s Head of Capital Markets, Tom Hinton, said: “We have pioneered this new model of share distribution – giving brokers and companies access to previously untapped retail demand. It has never been done before and, as such, SyndicateRoom is the only means for retail investors to participate in the share offer, obtaining the same discount as institutional investors. Not only are we giving the crowd access, but we’re doing so at the most advantageous price in the market for individual investors.”
SyndicateRoom has been recognised by AltFi as among the best platforms for managing risk and safeguarding investors and has won several awards such as ‘Best Investment Platform 2015’ and ‘UK Alternative Finance Platform of the Year 2015’. SyndicateRoom has undertaken over 70 capital raises through the platform since it was founded in 2013.
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Katie de Cozar Rushforth
Rob Mindell / Darius Alexander