An Equity Crowdfunded enterprise of the UK finally makes its way to the Stock Market

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Equity Crowdfunding has been much criticized for it not having any established exit ways. People have rather stayed wary of this form of crowdfunding because this one is combined with umpteen contingencies. In a few words, Equity Crowdfunding is a long-term, high-risk investment option.

Apparently, a long-term investment that is high risk too naturally is going to give jitters to the crowd.

Bringing sunrise to Equity Crowdfunding, here is one such organization, FreeAgents Holding that hosted a successful IPO on the Alternative Investment Market. FreeAgent Holdings had previously leveraged her capital needs through Equity Crowdfunding.

 

FreeAgents Holdings

The company was launched in the year 2007. This Edinburgh based entity provides online accounting software to proprietors and small business for managing their accounting seamlessly. The idea is to help people who are short on resources (human as well as capital) self-manage their finances and tax compliance requirements in an effective and hassle free way. The enterprise has approximately 52000 clients. The executive team of the company comprises Ed Molyneux – CEO& Founder, Olly Headey – CTO &Co-Founder, and Roan Lavery – Product Designer &Co-Founder.

Equity Crowdfunding in the Past

FreeAgents Holding took to Crowdfunding last year in the month of July. The company offered 3.21% of her equity on Seedrs for raising a total of 1 Million Pounds and ended up raising 1.2 Million Pounds from 700 investors. The company had put her valuation at Pounds 30,177,600. And after 16 months since FreeAgents raised funds through equity crowdfunding, the company went trading on AIM. Seedrs is one of the most promising equity crowdfunding platforms of the United Kingdom.

On the event of FreeAgents going public, the CEO of Seedrs stated, “To our knowledge this is the first time an equity crowdfunded company has gone on to IPO, and it’s great that the shares owned by our investors will now have liquidity on the stock exchange,” he further added, “We have always believed this asset class will be very fruitful for investors with diverse investment portfolios, and FreeAgent’s IPO is an early example of that.”

 

Alternative Investment Market

AIM is a part of London Stock Exchange. It started in the year 1995, and since then it has launched over 3600 companies from all over the world through it. The purpose behind AIM is to provide a platform to small and medium-sized businesses for raising growth capital. The regulatory burden on this platform is far less than the full-fledged LSE. Indices concerning AIM are FTSE AIM UK 50 Index, FTSE AIM 100 Index, and FTSE AIM All-Share Index. These indices indicate the health of the exchange.

Mark Fahy, Head of UK Small and Mid-Cap Companies, London Stock Exchange said, “This IPO showcases that London’s markets are open, willing and able to fund high growth fintech businesses. It also highlights that AIM is a market for the whole of the UK, supporting ambitious companies from every region of the country, including Scotland. The significant capital raised on AIM this year is a clear sign of the market’s enduring capacity to connect to dynamic companies to permanent institutional and retail capital.”

The IPO

The organization raised a whopping Pound 10.7 Million out of the IPO. The company is valued at Pounds 34.1 Million. FreeAgents Holding is the 32nd IPO this year on the AIM. FreeAgent chief executive Ed Molyneux said, “We are very pleased to have today been admitted to trading on AIM – this is a transformational event for FreeAgent. I am delighted by the interest shown in FreeAgent by investors, resulting in our successful placing, and equally delighted to welcome on board our new shareholders. Our entry to the AIM market is a positive step that marks the next phase of FreeAgent’s development as we progress our growth strategy. We look forward to our future as a quoted company with confidence.”

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated byCoAssets.com.
CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

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