There are a number of benefits for companies that choose to raise pre IPO money in London:

• Many companies are unaware of alternative methods to raise development capital. Pre IPO in London is a strongly growing space.

• Pre IPO finance in London can be an effective financing route in terms of valuations compared to the private equity option.

• Pre IPO investors are generally less stringent in terms of the structure of the deal and are typically not interested in taking a controlling position or, in many cases, even taking a Board position.

• There are also direct cost benefits for small fund raises.  Raising less than $5m at IPO can often be inefficient in terms of fees paid. In many circumstances companies would be far better raising pre IPO financing in a more cost effective and less dilutive manner 12 months or so from an IPO.

• It can be time effective as pre IPO financing can often be done in a matter of weeks and without a prospectus. An IPO on AIM generally takes 3-4 months and requires as admission document. Furthermore, if a company prepares itself well at the pre IPO stage it can make the IPO process quicker and more streamlined, particularly as the same investors are more likely to participate again at the listing.

• Securing pre IPO financing in London from well respected institutions can help improve the likelihood of an attractive valuation at the IPO and hence reduces management/investor dilution.

• Pre IPO financing can be used to raise capital to finance the AIM IPO process and also tide   the company over while IPO considerations such as international accounting audits and corporate governance procedures are put in place.

Pre IPO financing is a useful option that all international companies should consider. Please contact us on +44(0)20 3002 2070 for an exploratory discussion on a discrete and confidential basis.