Online investment platform SyndicateRoom is looking to open up the AIM market to its members as it rolls out its latest offering.
The thinking behind WatchList is that while interest in early-stage investing is on the rise, investment banks and UK brokers are shifting their focus and research away from the small caps.
As a result, it’s becoming increasingly difficult for the average retail investor to build up a sound knowledge of many AIM-listed firms.
This is where WatchList comes in, according to SyndicateRoom.
It gives members the opportunity to pledge capital in a curated list of AIM-quoted businesses which have already been endorsed and vetted by investment professionals, or ‘Watchers’ as they are known.
WATCH: SyndicateRoom's Tom Hinton speaks to Proactive's Andrew Scott
The logic goes that those companies on the WatchList can gain access to previously untapped investor demand and certainty of funding, while it is less of a shot in the dark for investors.
“This innovative approach both responds to a growing appetite for early stage investing – and provides companies with flexibility around their capital raising requirements,” said Tom Hinton, head of capital markets at SyndicateRoom.
“WatchList puts our members in the driving seat and gives them access to differentiated opportunities. It also provides companies with efficient access to an incremental source of patient risk capital to support their development.”
Image Scan Holdings Plc (LON:IGE) and Zytronic PLC (LON:ZYT) are a couple of the companies to have already signed up, with more due to be announced in the coming weeks, along with a corresponding Watcher.
Once members are happy with a particular stock and the research that has been done around it, they can then pledge capital at their required discount - with this pledge being binding.
The platform then works out how much interest there is in the stock and companies can then choose whether or not to accept the gathered demand.
Away from WatchList, SyndicateRoom also told investors that it will hold an event on Thursday 24 November where Jim Mellon will present to investors about investing in early stage and growth companies.