Crowdfunding & IPO - A Recipe for Fundraising Success

At NEX Exchange we support growth companies in their plans for fundraising. With the advent of crowdfunding, especially popular for companies with a strong consumer aspect, we are proud to have supported crowdfunding successes, where a quote on NEX Exchange has enhanced offering to potential investors.

Over the past five years, over £35bn has been raised for SMEs in the UK through crowdfunding. Crowdfunding rounds vary from £50,000 to several million. For SMEs, crowdfunding has often facilitated a quick cult-following for retail products. To raise more serious amounts, investors look for shareholder protections, a steady flow of public information and the prospect of trading offered by a public listing. These aren’t available through crowdfunding alone.

In 2014, NEX Exchange quoted vineyard and brewer, Chapel Down (NEX:CDGP) which successfully raised £3.95m in three days, well above their target of £1.6m. Unlike most crowdfunded companies, Chapel Down’s quote on NEX Exchange allows for live valuations and investors have the ability to trade their shares when they are ready to realise any gains.

NEX Exchange anticipates a huge capital opportunity within the crowdfunding space. As crowdfunded companies develop, they turn to an exchange in the next step of their development to access institutional capital, increase their visibility or as a liquidity event for early shareholders to exit. Capital for Colleagues (NEX:CFCP), profiled below, set out to raise £250,000 through crowdfunding, which was oversubscribed within a matter of weeks. They used this to make further investments in employee-owned businesses and working capital for growth.

For companies looking to crowdfund and investors alike, we provide a compelling offering: straightforward access to trading, better visibility than with crowdfunding alone and all the protections afforded by a fully regulated, public listing. Whether a potential investor or business raising funds, we’d like to invite you to find out more.




Patrick Birley is chief executive of NEX Exchange.
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