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12th February 2005
- updated 17th January 2006

New Finance Market Available for West Midlands Companies.

Small firms in the West Midlands that are ambitious to grow, can now access a new source of finance at an early stage in their development, thanks to a low cost, regulated, share trading service launched by AngelBourse Private Equity. AngelBourse Private Equity has designed the new service to enable unlisted companies to be valued and traded.

Advice and information about achieving a listing on the AngelBourse Private Equity market is available from Initiatives in Business Development Group Ltd. (ibd), the national network of 300 professional business advisors which has been appointed as Approved Intermediaries.

In the West Midlands, the AngelBourse Private Equity / ibd partnership will be led by successful entrepreneur Steve McEwen. Wolverhampton based McEwen has direct experience of the difficulties small firms encounter when trying to raise finance for growth having led acquisitions, raised finance and achieved a successful BIMBO. It is exactly this experience which underpins his appreciation of the significant benefits the AngelBourse Private Equity service brings to firms in the Region.

AngelBourse Private Equity’s low cost and easy access to finance will be suitable for high-growth, early stage West Midlands’ businesses; this new market will raise their profile amongst brokers, intermediaries and investors whilst also preparing them to graduate to a senior market. AngelBourse Private Equity also provides a source of equity finance at an earlier stage in a company’s development than has been previously possible.

Guy Saxton, Managing Director of AngelBourse Private Equity explained: “We think this is particularly relevant for companies looking to raise money; lack of liquidity is frequently cited by investors - who are worried their cash may be locked in indefinitely with no mechanism for willing buyers and sellers to meet - as a reason for not investing in early-stage companies. If a trading platform is already in place this will facilitate the fund raising process.”

Currently only 0.3% of UK businesses are listed on an exchange with SMEs in particular finding the cost of a listing on a recognised exchange such as AIM or the London Stock Exchange prohibitive (typically in excess of £250k).

Only current shareholders in companies, high net worth sophisticated investors and FSA authorised persons can match their bargains. This means that companies can provide information to investors in ways which do not have to pass stringent rules or qualify as formal investment communications, thus delivering substantial savings in professional and other costs.

Steve McEwen, comments “In my work as an adviser to small firms I understand all too well how lack of finance holds them back at all points in their development cycle; this new service is a huge step forward. The great thing about it is that it is open and accessible. AngelBourse Private Equity operates in the same transparent and ethical way as does ibd.”

AngelBourse: “ibd provides a much needed service to SMEs. Its members have a wealth of contacts, knowledge and experience across their network. We are delighted to be working with them, supporting the growth of small businesses in the UK”.

More information about ibd and AngelBourse Private Equity can be found at
www.ibd-uk.com and www.angelbourse.com.

ENDS

ABOUT ANGELBOURSE

• AngelBourse was founded in 2000 since when it has been successfully raising early-stage equity funding for high-growth companies seeking between £200,000 and £2 million.
• AngelBourse has a network of approximately 2,500 high net-worth and sophisticated investors representing a notional £62 million of private capital per annum.
• AngelBourse currently has four companies on their trading platform:
    - Goldshore – the employee benefits specialist
    - Polastar - the transport safety systems company
    - IWXchange – the high speed internet business
    - Last Mile Communications – the wireless communications specialist
• AngelBourse works with an intermediary network of circa 20 professional services firms including IBD, PKF, Kingston Smith and Blackstone Franks.
• AngelBourse is a founder member of Single Pathway to Market.
• AngelBourse is Chaired by Tomas Carruthers, the internet entrepreneur and Chairman/CEO of Interactive Investor.
• John Blowers was appointed Managing Director of AngelBourse in 2002 and was previously of AMP, UBS, iii and the Financial Times Group.

THE ANGELBOURSE PRIVATE EQUITY TRADING PLATFORM

• FSA regulated
• Low-cost solution (£5,000 per annum)
• Matched bargain, single market-maker trading
• Pre – IPO showcase of the UK’s most ambitious companies
• Web-based to allow speed of communication
• Designed to emulate the familiar information of quoted businesses
• Documentation designed to integrate with the more senior markets
• Information restricted to current shareholders, High Net-Worth, Sophisticated investors and FSA authorised persons only, therefore no requirement to authorise communications as investment promotions

Cost comparisons (including estimated fees) for AngelBourse compared with regulated alternatives are as follows:

Further information about AngelBourse Private Equity is available on www.angelbourse.com

ABOUT ibd

Initiatives in Business Developments Ltd. (ibd was founded in 2002 by Terry Forrester – now the group managing director- and marketing director, Alan Ford. Now a 300 strong membership organisation, ibd works with start ups and small to medium sized businesses offering hands on business development advice and implementation support. ibd members typically are experienced, senior managers who bring maturity and experience and who have previously held senior level positions in business. ibd operates throughout the European Union and a South African operation will be launched in 2005. Since its foundation, ibd members have worked with over 6,000 small companies.

ibd has built a number of innovative partnerships with some of the UK’s largest banks and financial institutions including HSBC, Nat West, PwC, venture capital providers AngelBourse Private Equity and EurExel. This enables owner managers in small firms more easily to access specialist expertise when they need it.

ibd’s national team provides a high quality, full service to SMEs. All ibd members have to go through a stringent recruitment programme, attend comprehensive and continuing training programmes and adhere to the organisation’s ethical policy.

More information:-
About ibd
Richard Olsen AngelBourse Project Manager on 01780 754 017, Steve McEwen on 07890 848618

About AngelBourse Private Equity
Guy Saxton on 020 7382 4382

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