PrimaryBid, a UK-based WealthTech platform enabling retail investors to participate in primary equity offerings, has raised $190 million funding from investors including BlackRock, Softbank’s Vision Fund 2 and Baillie Gifford. The latest funding round values the company at over $1 billion, making PrimaryBid one of the few “unicorns” in the U.K.’s wealth management sector.
The fresh funding will accelerate product development, including international expansion and further improve user experience; explore new markets; grow the team of 80 employees across Europe, Middle East and Asia; support financial institutions launching new products; and add value to existing clients.
The WealthTech platforms has been helping companies worldwide tap into an alternative source of capital since inception in 2017. It can help firms simultaneously raise capital from private markets, where qualified institutional investors such as mutual funds are dominant players and public markets where retail investors tend to dominate the scene due to their investment numbers.
Overview of PrimaryBid
PrimaryBid is a WealthTech platform that enables retail investors to participate in primary offerings by listed companies. It was recently reported that the company had secured $190m of funding.
This article will provide a comprehensive overview of what PrimaryBid is, how it works, and the advantages it offers to investors.
Overview of PrimaryBid’s platform
PrimaryBid is a WealthTech platform that provides investors access to capital markets investments. Its mission is to provide more people with transparent and efficient access to private securities transactions such as equity raises for listed companies. This allows investors to buy funding from the companies making the offer and negotiate the purchase price of the shares, rather than relying on a broker or a bank to do so.
PrimaryBid’s platform connects companies with potential investors, who can then place bids for shares offered through PrimaryBid’s network of traditional broker-dealers, Crowdfunding platforms, Private Equity firms and Investment Banks. The platform also enables investors to purchase over-allocated shares that may not be available directly from the companies making offers of private placements. In addition, PrimaryBid enables qualified institutional buyers such as family offices and fund managers to participate in private placement initiatives by enabling them access pre-direct investing opportunities.
The technology-driven model offered by PrimaryBid sets it apart from traditional banking models, offering enhanced transparency and efficiency. This has been further enhanced by recent developments in its UK Strengthened Sponsorship Regime being implemented in April 2021 with several tier 1 UK banks acting as sponsors on its platform. In addition, by providing greater access points for quality investments which had previously been difficult for non-institutional investors to gain exposure ,the percentage of these investments allocated outside of traditional networks have shown an increased surge since appointment in late 2020. This places PrimaryBid at the forefront regarding WealthTech innovators unlocking shareholder capital within global markets efficiently through leveraging modernizing technological Infrastructure for retail investors globally.
PrimaryBid’s recent funding
PrimaryBid, a British RegTech and WealthTech company, has secured $190 million (£137 million) in its Series C funding round. U.S. venture capital firm General Atlantic leads the latest raise and new investors include Shell Ventures and Sumitomo Mitsui Banking Corporation. Oak FT and return backer Draper Esprit also participated in the round.
The new funding will help the platform expand its operations further in the UK, Europe, and the U.S., focusing on bringing more retail and institutional investors together to easily access public equity markets. PrimaryBid will also use the funds to invest further into research & development, artificial intelligence capabilities, and wider product support offerings.
PrimaryBid’s platform helps companies raise capital via online “virtual” bookbuilds for their existing shareholders as well as other sophisticated investors’ participation according to their financial profile, thereby reducing market manipulation & short-term intent from funding decisions making it relatively faster & cost effective process for companies raising capital which were expected earlier within minimum subscription of certain percentage of a security before launching publicly through exchanges or traditional debt instruments such as Credit/Debits cards or other payment gateways depending on local jurisdiction laws.
Impact of the Investment
The investment into PrimaryBid, one of the largest WealthTech platforms, sparked a wave of excitement within the WealthTech sector. This investment can potentially revolutionize the industry and open up new investor opportunities.
Let’s take a closer look at the impact that this investment could have on the WealthTech industry.
PrimaryBid’s plans for the investment
With the recent funding round of $190 million, PrimaryBid is meeting their growing needs and aligned with their long-term vision. The new funding will enable the WealthTech platform to further advance its product suite and expand its operations onto a global scale. In addition, this securing of funds is expected to bring invaluable resources to PrimaryBid’s development projects, boosting research and innovation capabilities and increasing capacity in other key departments.
The fresh capital will enable PrimaryBid to provide innovative solutions for businesses seeking an organized method for responding quickly and efficiently to primary market offers. This combination of technological capabilities with stringent compliance will ensure that processes are secure and reliable every time, ensuring a successful deal structure within the industry standards. Furthermore, these upgrades will allow them to reach out to an untapped market by simultaneously expanding their operations into Asia-Pacific and the US markets.
The latest investment will offer much-needed support for PrimaryBids strategic growth plans with a focus on building out new product lines geared towards equity crowdfunding — allowing more people access to a wider range of investments — as well as digitizing alternative securities offerings such as private placements to tech companies operating mainly in private markets. In addition, this broadening of Fintec capibiltiies through targeted investments will help accelerate digital transformation in financial services industries worldwide.
WealthTech platform PrimaryBid lands $190m
PrimaryBid announced that it has received $190m in a recent round of funding, bringing the company’s total investment to over $250m. This is great news for the UK-based WealthTech platform, which provides individual and institutional investors equitable access to private-market investments.
The new funds will help PrimaryBid increase its offering and ensure its continued growth. Through the investment, PrimaryBid will have access to additional resources that will enable them to continue supporting their customers through their current and future products.
PrimaryBid plans to use the money to expand their product line by adding more technology products such as AI, machine learning, and blockchain. This additional tech infrastructure will improve the customer experience by introducing efficiencies currently unavailable with traditional stock brokerage platforms.
In addition, PrimaryBid plans to use the funds for product innovation and geographic expansion to become a leader in global WealthTech solutions. With new tools such as their MoneyMatch feature, they are positioning themselves at the forefront of discussing how alternative investments can improve investor diversification and returns.
The additional funding marks a milestone in PrimaryBid’s journey and validates their great work with their platform. With continued investment into technology advancement and customer support capabilities, PrimaryBid is well positioned for success in today’s market landscape.
Conclusion
PrimaryBid has achieved strong investor backing across three funding rounds, including the latest Series D financing round. The company plans to use its $190m investment to further develop its technology and expand its services into North America and other markets worldwide.
The WealthTech platform also intends to continue working closely with leading investment banks, asset managers, and issuers to provide private investors access to a wider range of investment opportunities. This would enable them to make better-informed decisions over their capital investments and benefit from increased returns.
PrimaryBid’s achievements have demonstrated the increasing demand for digitalised, highly secure financing solutions designed specifically for smaller investors and built with their interests in mind. Its proven record has already established PrimaryBid as a leader in WealthTech today, and it is set to further expand its market presence shortly.
