What is crowdlisting?
What is crowdlisting?
Crowdlisting is an innovative form of alternative finance that allows startups and SMEs to list their shares or debt instruments on a stock exchange via crowdfunding platforms, bypassing the traditional and costly IPO process. This method reduces the financial and market risks associated with public offerings by separating the capital raising phase from the listing phase, making stock exchange listing accessible and affordable for smaller companies. It leverages equity crowdfunding campaigns for capital raising, subsequently facilitating a direct listing on regulated markets, thus democratizing access to the capital market and attracting a broader and more diversified investor base, including institutional investors, by enhancing the liquidity and perceived stability of the investment.
Why is it interesting for investors?
The Spreds investors focus on growth companies, that are often privately owned. But investments in such companies are often long-term investments, with no easy way for investors to sell their shares. Crowdlisting combines the possibility to invest in a high potential company with the liquidity provided by the stock exchange. The stock exchange helps create more liquidity and offers the possibility to exit its investment sooner than if the company remained public. There is of course never a guarantee that investors will be able to sell their shares at the price they want, but it gives more opportunities.