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SyndicateRoom brings crowdfunders to IPO market




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This announcement has been published by Syndicate Room Ltd. The information contained in this announcement is not intended for any person in the United States, Canada, Australia, Japan or in any other territory where to do so would breach applicable laws or regulations.

 

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From left to right: SyndicateRoom CEO Gonçalo de Vasconcelos, Head of Capital Markets Tom Hinton and CTO Tom Britton. 

 

Summary

  • SyndicateRoom becomes the first crowdfunding platform to join the public markets
  • Retail investors to benefit from £1.65bn in value from discounted placings
  • Public equity market capability launched with IPO

 

Cambridge, UK – 14 March 2016: SyndicateRoom, a leading UK crowdfunding platform, announces today its intermediary status with the London Stock Exchange, enabling crowdfunding investors to participate in IPOs and placings on the London Stock Exchange Main Market and AIM.

 

First crowdfunding platform to join the public markets

SyndicateRoom today becomes the first crowdfunding platform to join the public markets, having received approved intermediary status for its first IPO. 

SyndicateRoom is currently the only alternative finance company to provide its members with direct access to public and private equity markets – helping their investor base to diversify their exposure to different asset classes through one platform. A wide spectrum of equity opportunities will be available to SyndicateRoom members, from early-stage crowdfunding rounds through to high-growth IPOs, pre-IPOs and discounted placings encouraging greater investor loyalty.  SyndicateRoom members will now be able to participate across the entire funding journey of growth businesses.

SyndicateRoom has been recognised by AltFi as among the best platforms for managing risk and safeguarding investors. SyndicateRoom has undertaken over 70 capital raises through the platform since it was founded in 2013.

 

Equal access to the IPO market

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.

Discounted placings are typically only offered 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 £1.65billion 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 and believes there is strong appetite for investment among individuals considered too small to be embraced by the advisor community. Twelve million individuals in the UK population are estimated to hold individual company shares but over three quarter of those did not buy into public equity in the last year, meaning SyndicateRoom will be providing the London Stock Exchange with an important and a valuable new source of retail investor demand.

Gonçalo de Vasconcelos, CEO and Co-founder of SyndicateRoom, said: 'SyndicateRoom has already built a large member base of online crowdfunding investors, helping to create a new equity-owning class – the mass affluent. 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 news that retail investors will now be able to participate in IPOs is extremely welcome,' commented David Brown, stock market investor and SyndicateRoom member. 'I've been investing for more than 25 years on the stock exchange and 15 years as a business angel and am incredibly excited about the prospect of having access to IPOs and private placings on a level playing field with institutional investors. It's fantastic to see SyndicateRoom leading the way, once again.'

Jonathan Milner, Co-founder and Deputy Chairman of Abcam plc said: 'I wish this model had existed back when I listed Abcam. SyndicateRoom will enable a much larger base of retail shareholders for companies, which in turn will increase liquidity and stability. I believe this is a very positive shift for the industry.'

SyndicateRoom's Head of Capital Markets, Tom Hinton, who joined the company in 2015 from Citigroup, where he was VP in the capital markets team, said: 'At SyndicateRoom we believe that equality should be at the heart of equity investment. Giving the retail community access to the same benefits that institutional investors enjoy signals a strong starting point to achieving just that.'

 

Notes to Editors

About SyndicateRoom

SyndicateRoom is the only UK-based investor-led crowdfunding platform. SyndicateRoom allows its members to co-invest alongside experienced angel investors in highly sophisticated investment opportunities while enjoying the same economic terms as the lead investors.

SyndicateRoom was founded by Gonçalo de Vasconcelos and Tom Britton, and its own lead investors and advisers are UK Business Angel of the Year Peter Cowley and super-angel Jonathan Milner. SyndicateRoom is authorised and regulated by the Financial Conduct Authority.

 

Additional notes

This announcement has been published by Syndicate Room Ltd. The information contained in this announcement must not be transmitted or otherwise sent to any person in the United States, Canada, Australia, Japan or in any other territory where to do so would breach applicable laws or regulations.

This announcement is an advertisement and not a prospectus. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information contained in a final form prospectus expected to be published by the company raising finance (the Company) in due course in connection with the offer of ordinary shares in the Company and the admission of the ordinary shares in the Company to the premium listing segment of the Official List of the Financial Conduct Authority and to trading on London Stock Exchange plc’s main market for listed securities. Copies of the prospectus will, following publication, be available, free of charge, from the Company’s registered office.

This announcement has been prepared by and is the sole responsibility of Syndicate Room Ltd of 71 Regent Street, London, CB2 1AB which is an authorised person for the purposes of the Financial Services and Markets Act 2000.

This announcement does not constitute or form part of any offer to issue or sell, or the solicitation of an offer to acquire, purchase or subscribe for, any securities either (i) in the United States, Australia, Canada or Japan or any other jurisdiction in which such offer, solicitation or sale would be unlawful or (ii) to any U.S. Person (as defined in Regulation S under the United States Securities Act of 1933 (the Securities Act)). In particular, no shares have been or will be registered under the Securities Act and may not be offered, sold or transferred, directly or indirectly, within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States. No public offering of shares is being made, or will be made, in the United States, Australia, Canada or Japan.


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