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Delivers investment opportunities in capital-starved SME’s
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London and Melbourne (13th Nov 2008): The Growth Markets Organisation (GMO) has completed the final development phase of Growthwire, its global growth markets investment newswire service which began distributing seed/start-up, early-stage, mezzanine and pre-IPO deal-flow to private investors, mostly wealthy successful entrepreneurs, in June and which are posted to the newswire by corporate finance and other capital raising advisors. Now, advisors and promoters on 30 growth company small-cap stock exchanges worldwide including AIM and PLUS (UK), NSXA (Australia), NYSE/Alternext (Europe), TSX Venture Exchange (Canada) and China’s Shenzhen small-cap exchange can post their IPO filings to Growthwire. Growthwire releases the previously ‘hidden’ alternative investment deal-flow between capital raising advisors and private investors, corporate venturers and alternative fund managers worldwide.
Richard Symon, Chairman of Melbourne-based GMO said: “Our research shows that the global growth capital markets, from start-up private equity to small-cap IPO, is populated by some 10 million wealthy entrepreneurs with a good share of as much as $17.4 trillion available for investment. Yet investors have always been confronted with a fragmented investment stratum with no structured, consolidated medium which makes it easy for them to identify and respond to opportunities, as they find in any other capital market. It’s no surprise therefore that liquidity has always been the major problem across the growth markets. At the same time it is very frustrating for investors, most of whom are seasoned entrepreneurs and CEO’s of their own successful companies, who wish to apply their experience and capital gains to further wealth creating opportunities.”
Besides market participants, 500 media have so far registered to use Growthwire as a new source of business and investment editorial including the Daily Telegraph (UK), Wall Street Journal and the Australian Financial Review along with professional, trade, technical, local and regional business magazines and portals worldwide (editors: please see Special Notice to Editors below).
Analysis of the growth company funding sector by GMO reveals a latent global capital market for investment in early-stage, growth companies. Research in June 2008 by the Scorpio Partnership, a specialist strategic advisor to the global wealth management industry, revealed that there is now US$17.4 trillion of private wealth under management worldwide. Also, the British Bankers Association in October 2007 reported that alternative investment is now in the investment mainstream for wealthy individuals. A report in November 2007 by IFSL (International Financial Services London) said: “The main source of growth in private wealth originates from those involved in building successful businesses… entrepreneurs that have become millionaires.” Using anecdotal data from Australia and the USA, combined with extrapolated data from the Cruickshank Report into Competition in UK Banking in 2000 and more recent research using Companies House and private company shareholder data, GMO has found that there are some 10m wealthy entrepreneurs who would invest in one million capital-starved growth companies, worldwide, at any one time. However, research from various sources over two decades is consistent in showing that deals must be easy to identify, have a professional interface to the transactions and protect the investors’ identity until they are prepared to reveal it, all of which Growthwire provides.
Deals are currently posted to Growthwire from Australia, Canada, China, South America, SE Asia, UK, USA and all parts of eastern and western Europe across all markets from agriculture to energy and IT and advanced technology to transport. The majority of private equity deals are between 50,000 and 20m (peaking around 250,000), with small-cap IPO’s ranging between 500,000 and 50m across all major currencies. Because the service is built for volume participation costs are minimal for capital seekers, their advisors and investors whether used at the local, national, regional or global level.
Symon added: “We all know that information drives liquidity. As a first step towards serving this investment stratum GMO has consolidated what was once a chaotic information environment for capital raisers, deal-makers and investors alike, and we look forward to working with all market participants in the future. Also, we must never forget that it is today’s early-stage companies that develop most of the leading innovations and become the market leading major corporates of the future.”
Further information at www.growthwire.com.
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ENDS
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Further editorial information
GMO: Richard Symon, Chairman, + +61(0)3 8683 3993, chairman@growthmarkets.org
Growthwire: Nat Green, Director of Communications, +44 (0) 1568 611196, nat.green@growthwire.com
Special Notice to Editors
Growthwire does not carry content from IR/PR agencies other than that distributed by growth companies listed on GMO Member stock exchanges. Content is posted by corporate finance and other capital-raising advisors to growth companies and the deal-flow content can be used by you as a unique new source of editorial.
Growthwire Ticker-Tape
The Growthwire ticker-tape can be downloaded to media, corporate finance and other relevant sites from www.growthwire.com/tickers.asp. You can design it at our site to exactly match your own graphics and you can select from horizontal or scrolling tickers covering global, Asia Pacific, UK/Europe or North America content. View live tickers at: media site www.vcjournal.com.au, corpfin/advisor site: https://www.brucecharlesadvisers.com
Compliance
Growthwire is domiciled in the UK and investors must self-certify as high net worth individuals or sophisticated investors as defined by the UK’s Financial Services and Markets Act (FSMA) 2000 (Financial Promotion Orders 2001) Amendments 2005 as part of their registration process. When responding to private equity or IPO investment opportunities outside their own country they must comply with the regulations in which the Growthwire Authorised Advisor who posted the listing to Growthwire is domiciled.
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