Vertical: Capital Markets; Investors/VC/PE; Peer-to-Peer Lending; Personal Financial Management
PrimaryBid is an online crowdfunding platform focussed on listed companies, servicing both retail and institutional investors. The primary goals for the platform are to: (1) reduce management time spent raising capital (2) provide competitive pricing terms for Issuers and (3) democratise investor access – thereby increasing total investment into UK listed companies.
As Issuers are publicly traded, due care must be given to ensure compliance with all the regulatory requirements. The platform runs two investment methods: Issuer-led and investor-led. Both processes are FSMA compliant. The Issuer-led process is a modernisation of existing fundraising processes such as accelerated book builds and open offers. These are pre-announced and typically conducted at a fixed price.
The platform aggregates this demand on behalf of the Issuer. The investor-led process proactively collects bids from investors for new capital. This is done via a ‘blind book building’ process where investors set the prices at which they are prepared to buy new equity directly from the Issuer. The platform allows investors to place bids at levels they choose. The Issuer can accept these bids at its discretion and issue new equity directly to the investors. Once an investment is completed PrimaryBid transacts with the Issuer and onward settles electronically into the investor’s broker account.