Financial services like investing are getting more accessible thanks to the growth of fintech. One of the bigger players pushing the boundaries of that concept is announcing a big round of funding on the heels of strong demand and what it believes are even bigger opportunities ahead. PrimaryBid helps companies that are going public, or public companies that are raising more money, offer their shares to retail investors alongside more traditional share sales.
PrimaryBid plans to use the funding to continue building out the products that it offers to companies, such as the ability to invest in SPAC-based public listings and investments in retail bonds.
Today, PrimaryBid interoperates with some 60 channels to enable investments, which include brokerages and apps that people use to make investments, and that list is likely to continue growing.
The company wants ordinary people to be able to invest directly in IPOs alongside banks and other large, professional investors.
Is public markets the same as they were 100 years ago? He said that services wouldn't work with the APIs, with mobile apps, and more accessible investing.
The Series C round is being led by SoftBank, along with participation from previous investors, including the London Stock Exchange Group.
A note on the round in PitchBook from January pegged the valuation at $650 million, but PrimaryBid is not revealing a valuation. Sky News reported at the time that the pre-money valuation for the round was $500 million. If the figures are correct, PrimaryBid's valuation is around $690 million.
PrimaryBid has been on a growth tear since Series B, fueled by an increasing appetite among everyday people to get more involved in the world of investment. The company says it has helped facilitate share offerings for retail investors for 150 IPOs and follow-on share issues in the past 18 months. The company is starting to work with companies in France and the Netherlands with the help of its investor, and it is also looking to open for business in The Netherlands. Deliveroo, PensionBee, and the US IPO of Soho House were some of the bigger share sales that it has powered.
He said in an interview that they have found a foothold in the capital markets. They all see the value of including them in a thoughtful and robust way and we are giving them the ability to do that through our platform.
A series of other developments have helped PrimaryBid ride on a wave of interest that has been around for a long time. Ordinary consumers can now invest in public companies and currencies that interest them or that they think might bring them good returns, thanks to the growth of financial apps and the new approach to investing popular in Europe.
The Gamestop stock frenzy of 2021, for example, highlighted how powerful general public investing had become. It was only a matter of time before democratization moved to IPO and follow-on share issues.
There is a strong argument for B2C companies to offer shares to their users in order to raise money and get more customers. That will only grow. The company's CEO stated that the company wants to offer shares to individual investors when it goes public.
Companies and investors are benefiting from market demand, either on the part of companies or themselves, according to Sambasivan. He said that B2C forms only 10% of the trades that PrimaryBid has worked with.
Anthony Doeh, a partner at SoftBank Investment Advisers, said in a statement that PrimaryBid makes it easy for anyone to access stock issuances previously reserved for professional investors. We believe we can add significant value to the business through our global network and expertise, and we are excited to partner with them.
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