Can retail investors solve the SME funding gap? Sharemark launches primary fund-raising platform

Monday, Jul 04 2011 by
Can retail investors solve the SME funding gap Sharemark launches primary fundraising platform

Marketwatchers and investors in the SME space will be interested to see the latest venture announced by Sharemark to provide small and medium sized businesses access to a fundraising channel aimed at retail investors.  There has been much talk of late here and elsehwere as to the difficulties faced by SMEs when looking to raise finance. Likewise, all too often private investors are neglected from company fundraisings which instead instead on raising institutional funds through placings. However, this summer, HM Treasury plans to implement the doubled Prospectus Directive limit.

In response, Sharemark is augmenting its existing secondary market activities to allow smaller firms the opportunity to raise between €500,000 and €5m of primary fund-raising on its platform. Investment on the market will be channelled through The Share Centre (LON:SHRE), Sharemark’s parent company, as well as a number of third party brokers. Lesmoir-Gordon, Boyle & Co will provide corporate finance expertise; while legal expertise will be provided by Squire Sanders Hammonds. SMEs will also receive access to up to £10m bank debt through Clydesdale Bank under the same due diligence process.

Gavin Oldham, Chief Executive of The Share Centre, said:

“This venture from Sharemark offers a timely solution for SMEs whose growth has been held back through the restricted lending opportunities available. It also provides retail investors, who have generally been denied access to new issues over recent years, with an excellent chance to share in this success by being able to invest in the companies, free of both dealing commission and stamp duty".

Filed Under: SMEs, Smallcaps,

About the Author's Investment Research

Stockopedia Features Profile Image Promotional
Stockopedia PRO

Stockopedia PRO is now LIVE - providing 2300 Stock Reports that provide everything that the fundamentally oriented investor needs to know to make actionable decisions. In Q4 2011, the service opened on an invitation only basis, with a full launch in Q1 2012.  Sign up here: more or visit website »


As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.

Do you like this Post?
7 thumbs up
0 thumbs down
Share this post with friends

Share plc is a United Kingdom-based holding company. The Company operates in two segments: The Share Centre, which provides stock broking and custodian services to retail investors, and Sharefunds, which operates a fund administration service. The segment's customers are authorized funds for whom a range of administration services may be provided. Its subsidiaries include Share Centre Limited, engaged in retail stock broking; The Share Centre (Administration services) Limited, engaged in providing administration services; Sharefunds Limited; Share Nominees Limited; Stock Academy Nominees Limited, and Sharesecure Limited. Share Centre Limited provides and administers execution-only and advisory trading accounts (share accounts), individual savings accounts (ISAs), self-invested personal pension plans (SIPPs), child trust fund accounts (CTFs), junior individual savings accounts (JISA), share incentive plans (SIPs), investment club share accounts and enterprise investment scheme (EIS). more »

Share Price (AIM)
Mkt Cap (£m)
P/E (fwd)
Yield (fwd)

  Is Share fundamentally strong or weak? Find out More »

4 Comments on this Article show/hide all

marben100 5th Jul '11 1 of 4

So, what will be the mechanism for private investors to get involved? I don't see any detail on Sharemark's website.

| Link | Share | 1 reply
MadDutch 5th Jul '11 2 of 4

I support Sharemark in this. They have been my share club's brokers for 13 years, and have been excellent.

I wish them good fortune in providing a service that the banks seem incapable of providing.


| Link | Share
Sharemark 6th Jul '11 3 of 4

In reply to marben100, post #1

Sharemark will be launching this service to retail / private investors in the next few weeks. We will update our website with instructions when it is launched. Thank you for your interest.

| Link | Share | 1 reply
marben100 6th Jul '11 4 of 4

In reply to Sharemark, post #3

Thanks. I agree with MadDutch that this is an excellent and much needed initiative and look forward to hearing further details.



| Link | Share

What's your view on this article? Log In to Comment Now

You can track all @StockoChat comments via Twitter

About Stockopedia Features

Stockopedia Features

Stockopedia Features covers in-depth stories on strategies, companies and themes that are relevant to online investors. Investing is hard work. We don't try to over-simplify complex concepts - we prefer to try to help you navigate the detail.  more »

Stock Picking Tutorial Centre

Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis