What does a successful growth market look like?

A healthy growth market plays a crucial role in fostering economic growth by providing small and medium-sized companies access to capital.

The advantages we believe that contribute to a thriving growth market include:

01

Flexible and proportionate regulatory environment: Once admitted to a growth market, a company operates under a regulatory framework that is appropriate and accessible for their size and growth potential. A clear, proportionate and well-enforced rule book supports a company’s reputation by boosting confidence in its conduct.

02

Efficient capital raising, liquidity and trading: Enabling public companies to raise funding for growth through both an ‘initial public offering’ (IPO) and secondary market offers. The market will create access to a diverse pool of investors with an interest in funding growing businesses, while enabling investors to buy and sell shares with relative ease. A thriving growth market helps companies develop a mature investor base by attracting a mix of retail and institutional investors.

03

Efficient capital raising, liquidity and trading: Enabling public companies to raise funding for growth through both an ‘initial public offering’ (IPO) and secondary market offers. The market will create access to a diverse pool of investors with an interest in funding growing businesses, while enabling investors to buy and sell shares with relative ease. A thriving growth market helps companies develop a mature investor base by attracting a mix of retail and institutional investors.

04

Technologically enabled: Technology and innovation help to streamline and optimise systems and processes, minimising costs and burdens for companies going public.

05

A supportive ecosystem: An effective growth market offers a company credibility and visibility, increasing its attractiveness to potential investors, partners and customers. It also offers the possibility to engage with a network of experienced advisors, brokers and investors (through the market they are admitted to) who can offer guidance. A market should offer resources such as mentoring programs and business development support.

While UK growth markets possess significant strengths in all these areas, there is potential to enhance these strengths and build on recent capital markets reforms to ensure that UK capital markets support businesses of all sizes and sectors across the UK to invest, innovate and grow.

While UK growth markets possess significant strengths in all these areas, there is potential to enhance these strengths and build on recent capital markets reforms to ensure that UK capital markets support businesses of all sizes and sectors across the UK to invest, innovate and grow.