Crowdcube joins new retail investment platform

Crowdcube has joined a new platform which allows ordinary investors to take part in corporate IPOs.

RetailBook, previously known as REX, allows retail investors to take part in capital markets transactions such as initial public offerings (IPOs) and follow-on share sales through retail brokers.

It is based on tech used by City broker Peel Hunt, which is behind the venture.

Crowdcube is joining a raft of existing high-profile partners in the platform including Hargreaves Lansdown, Jefferies, Numis and Rothschild.

Crowdcube has raised over £1.2bn for over 1,300 businesses including Monzo and Revolut, and says it’s the “world’s largest equity crowdfunding platform”.

By joining RetailBook, it means that Crowdcube’s retail investors will be able to participate in IPOs on the same terms as institutional investors.

Peel Hunt is hoping that RetailBook will help broaden the customer base of the stock market amid calls for more retail investment from the government and regulators.

Co-CEO of Crowdcube, Matt Cooper, said: "The UK listings market has experienced substantial headwinds.

“Nevertheless, our partnership indicates our commitment to the UK market and what we expect to see a change in sentiment later in the year.

“As the tides shift and listings regain momentum later in the year, we want to ensure that retail investors reap benefits equal to those enjoyed by institutional investors.

“The partnership marks a significant step forward in democratising access to the capital markets and providing retail investors with equal opportunities to participate in the growth of exciting businesses. It also creates one of the largest single pools of retail investors in the UK to which a company may market their IPO.

Aaqib Mirza, Chief Executive Officer (designate) for RetailBook says: “As RetailBook progresses on its journey to becoming a standalone business, we’re delighted to partner with another leading financial sector name.

"We share Crowdcube’s mission to democratise the capital markets and look forward to providing their community with the ability to participate in IPOs of new companies that list on the London Stock Exchange in the future.”