The backers of a new “stock exchange” have called on solicitors and other professional advisers to put their business clients forward for a free listing on the Internet to gain access to more than 30,000 private investors, otherwise known as “business angels”.
David Rose, chief executive of the Development Capital Exchange (DCX), which runs a Web site listing small companies seeking investors, said many solicitors are asked by clients whether they know of potential investors.
He said: “There was never a problem for DCX in finding investors they are there.”
Rose added that solicitors would benefit by picking up the legal work from any deal that was set up through DCX.
DCX is aimed at small and medium-sized enterprises (SMEs) and is offering a free listing to the first 300 companies to apply. Ninety-eight companies have so far put information on the site, calling for investments ranging from less than £30,000 to more than £1m.
He said that DCX needed 300 companies before it opens the Web site to investors, to ensure that the business could consider a wide range of possible investments.
Barrister Mark Watson-Gandy, chairman of the Private Equity Funding Association (PEFA) and a tenant at Plowden Buildings, said: “Any new vehicle to get investments onto the market can't be a bad thing.
“All we want now is for companies seeking funds, and their professional advisers, to understand that finding an informal investor, or “business angel' no longer needs to be the tortuous process it used to be.”
Solicitors interested in DCX should contact David Rose on 01568 614262.