The London Stock Exchange (LSE) has announced a strategic partnership with Crowdcube, a prominent crowdfunding platform, aimed at cultivating a more inclusive and liquid private capital market ecosystem.
This collaboration offers an innovative opportunity for Crowdcube’s two million members, allowing them to invest in high-growth, later-stage private companies alongside large institutional investors. This initiative not only enhances investment options for individuals but also enables companies to tap into their customer base and stakeholders, fostering new liquidity sources.
This development comes on the heels of the LSE’s recent designation as the first operator approved by the Financial Conduct Authority (FCA) to manage a Pisces market for the secondary trading of private company shares. The government-backed Pisces initiative aims to broaden investor access to private entities.
Emphasizing financial inclusion, the LSE and Crowdcube will facilitate late-stage private-market secondary offerings on the LSE’s upcoming Private Securities Market, allowing eligible Crowdcube investors to participate on equivalent terms as institutional investors. Conversely, private companies utilizing the Private Securities Market will gain access to Crowdcube’s extensive investor network.
Julia Hoggett, CEO of the LSE, articulated the significance of this partnership, stating, “This collaboration presents a unique opportunity for private companies and investors to leverage the same advanced infrastructure and technology that supports the London Stock Exchange’s public markets, combining it with Crowdcube’s expertise as a leading investment platform in the UK.”