Crowdcube has joined the alliance of brokers who are forming Retailbook, the new platform giving retail investors access to IPOs.
Crowdcube, based in Exeter, is one of the world’s largest equity crowdfunding platforms. Since its founding in 2016, it has raised over £1.2bn for over 1,300 businesses including Monzo, Revolut and What3Words.
It will join existing partners Hargreaves Lansdown, Jefferies, Numis and Rothschild, enabling it to expand its model into IPOs.
The partnership aims to further the democratisation of capital markets and creates one of the largest single pools of retail investors in the UK to which a company may market their IPO.
Aaqib Mirza, the designated chief executive of Retailbook, said: “As Retailbook progresses on its journey to becoming a standalone business, we’re delighted to partner with another leading financial sector name.”
Retailbook is being established as a new legal entity which will own and operate a deal platform based on Peel Hunt’s existing REX technology.
REX is Peel Hunt’s retail access technology platform, which enables retail investors to participate in capital markets transactions such as IPOs and follow-on share offerings.
The City has faced an IPO drought with only five in the first quarter of 2023, raising just £81m. This was an 80 per cent fall compared to the same period last year.
The government is attempting to push a broader reformist agenda, including driving retail investment in capital markets in an attempt to enable fair access and ensure they democratise capital markets.
Co-chief executive of Crowdcube, Matt Cooper, commented: “The UK listings market has experienced substantial headwinds. Nevertheless, our partnership indicates our commitment to the UK market and what we expect to see a change in sentiment later in the year.
“As the tides shift and listings regain momentum later in the year, we want to ensure that retail investors reap benefits equal to those enjoyed by institutional investors.”