PrimaryBid, an online funding platform that enables investors to gain access to placings of AIM-listed companies, reportedly secured £7 million through its latest investment round, which was led by Pentech and Outward VC. Founded in 2012, PrimaryBid describes itself as a platform that allows private investors to participate in new share placings by listing companies.
“We trade across multiple sectors and have so far provided opportunities to thousands of private investors. Though currently focused on AIM listed companies, we are moving toward expansion into other markets in the near future.”
PrimaryBid also reported that it believes that private investors should have an equal right to participate in small-cap fundraises alongside Institutional Investors.
“For example, private investors constitute over 60% of average trading volume on AIM but are typically excluded from fundraises. PrimaryBid changes this by allowing Private Investors to participate in new share placings by listed companies.”
Speaking about the platform, Anand Sambasivan, Co-Founder and CEO of PrimaryBid, reportedly stated:
“Everyday investors are a vital part of the stock market and yet unable to buy discounted share deals – a longstanding imbalance in the public markets. This is true whether it is a government selling down its holding in a large company or a quoted company is raising growth capital. Our platform addresses this challenge, giving small investors the same access as traditionally afforded to large institutional investors.”
In regards to the investment round, Craig Anderson of Pentech, added:
“We believe equity capital markets infrastructure is dominated by an institutional focus and is not geared for retail investors, which unfairly restricts consumer access to the primary equity markets. PrimaryBid addresses this problem by using technology to democratize the equity capital markets to provide a new asset class to retail investors.”
