smallbusiness.co.uk: Helping your business think big

Small and medium-sized firms looking to access funding can now get their business plans in front of up to 20,000 prospective investors, courtesy of the expanding Development Capital Exchange (DCX).

Established by publishing firm DCXWorld, the market aims to place growth investment opportunities in front of a multitude of ‘high net worth individuals’ and ‘sophisticated investors’. With regard to those seeking investment, DCXWorld chief executive David Rose explains that ‘businesses themselves cannot post their plans on the website, they have to go through corporate finance firms and other specialist advisers. This is to provide quality control of investments.’

Once an investor has expressed an interest in backing a particular company, the onus then falls upon the two parties to negotiate pricing and other transaction terms. ‘We suspect the nature of the market will tend towards sub £2 million investments, although there may be some larger deals, and we also expect investors to syndicate,’ Rose continues. ‘From what we have seen so far roughly 20 per cent of the opportunities posted will be start-ups, 70 per cent will be in a growth phase and the final ten per cent will be pre-IPO.’

In addition to the investment market, DSXWorld has also launched the Unlisted Shares Exchange (USX), which offers shareholders in unlisted companies a chance to sell their shares to other business people. ‘It is well-known,’ Rose notes, ‘that shareholders in private companies have no market into which they can place their shares for sale when they want to retire or realise this key asset for any other reason.’ This is the issue USX is attempting to address.

For further information on either exchange visit:

• www.dcxworld.com

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