Internet and telecommunications group SoftBank’s Vision Fund 2 led a $190m series C round for UK-based online investment platform PrimaryBid yesterday, as ordinary investors continue to seek convenient access to public markets.
The round was filled out by unnamed existing investors and came after the company raised $50m in a late 2020 series B round featuring bank ABN Amro’s venture capital unit, ABN Amro Ventures, as well as financial exchange operator London Stock Exchange Group and investment and financial services group Fidelity’s International Strategic Investments unit.
PrimaryBid operates an online platform that lets retail investors take part in initial public offerings (IPOs) and follow-on capital raises on the same terms as institutional investors.
Proceeds from the round will be used the expand PrimaryBid’s offering across continental Europe, where it has strategic relationships with ABN Amro and financial exchange operator Euronext, and to launch its service in new markets such as the United States.
The company claims it is has benefited from large-scale growth over the course of 2021, with more than 150 IPOs and follow-on investments in the UK listed on its platform in the past 18 months.
Demand for easier avenues where regular people can access investments has been on an upward trajectory, perhaps most visibly demonstrated with the $2.09bn IPO of US-based online trading platform Robinhood in July 2021.
Robinhood, which counts internet and technology group Alphabet and entertainment agency Roc Nation as backers, had raised $3.4bn from existing investors five months earlier.
Even digital banking apps like Revolut are offering quick and convenient access to stock purchases, along with assets like crypto.
PrimaryBid’s co-founder and chief executive, Anand Sambasivan, said: “Our ambition is to democratise public market offerings through a combination of technology, data and advocacy. Our platform deepens the relationships public companies have with their stakeholders and helps them make their equity and debt offerings more inclusive.
“We are proud to welcome SoftBank to our ownership and thank our existing investors for their continued support. This fundraising will enable us to deliver PrimaryBid’s infrastructure to companies internationally, expand our product portfolio and attract best-in-class technology and capital markets talent.”
Public markets are not the only game in town that are attracting retail investors. US-headquartered Yieldstreet bases its business model on letting ordinary people access alternative asset investments previously only available to institutional and high-net worth investors. It raised $50m from Mayfair Equity Partners in November 2021 to expand its series C round to $150m.
Other online share-trading platforms include Rally, which allows retail consumers to invest in equity shares of collectible assets such as NFTs and which secured $30m in a series B round led by VC firm Accel in May 2021.