Introduction to the Global Growth Market

A group of City leaders are raising millions of pounds to fund the launch of a “mini Nasdaq” stock exchange aimed at venture capital-backed companies. The project aims to revitalize the public market for growth companies by attracting capital from venture funds that invest predominantly in private companies.

The Founders and Fundraising

The Global Growth Market (GGM) is being led by Jon Prideaux, a former chief executive of London-listed Boku, and former AIM boss Martin Graham. They have approached investors about a £4m fundraising for the GGM. This funding will provide capital for the GGM’s technology platform and see it through a license application process with the Financial Conduct Authority.

The Problem with Public Markets

According to Mr. Prideaux, the GGM chairman, “Public markets stopped working for growth companies years ago.” The GGM aims to address this issue by offering a better deal to both businesses and capital providers. The new market will eliminate fund management fees and carried interest in return for providing half of eligible companies’ capital needs.

The Current State of Venture Capital

The GGM cites that “more than 30,000 late-stage venture capital companies valued at $4 trillion are stranded in private portfolios.” This has resulted in founders being unable to raise money efficiently, investors being unable to exit, and employees being unable to sell. The public markets are seen as too cumbersome, while private capital is overwhelmed.

The Solution

The GGM aims to bring both businesses and capital back to the public markets by offering a more efficient and cost-effective solution. The new market will provide a platform for growth companies to raise capital and for investors to exit their investments. With the £4m fundraising, the GGM is poised to become a major player in the public market for growth companies.