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The London Stock Exchange will enter the market for financing private companies

Signage is seen outside the entrance to the London Stock Exchange in London, Britain. August 23, 2018. REUTERS/Peter Nicholls

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LONDON, March 15 (Reuters) – The London Stock Exchange Group (LSEG) said on Tuesday it has partnered with private digital asset platform Floww to enter the market for unlisted companies looking to raise capital.

Britain is reforming its capital market after leaving the European Union to ensure London still attracts global investors.

The UK listing regime has already been eased in a bid to attract more tech companies to the stock market, but the Department of Finance also wants to make it easier for private companies to access funds and attract more investors. Retail.

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“LSEG will work with Floww to help it launch its first private capital-raising facility, while exploring liquidity and secondary market options, including through the use of new technologies,” the exchange said in a statement. .

Floww allows investors to monitor and track their investments in private companies and already offers 7,000 company profiles and 70 venture capital firms.

“With LSEG, we are on the right track to build a connected network allowing all market players to share and manage their data, offers and opportunities, as well as the ability to trade company shares at any time. “said Floww CEO Martijn De Wever.

Many smaller companies have turned their backs on a public listing, citing high costs and regulatory requirements, according to a Finance Department consultation paper last year.

Building a bridge between private and public companies is seen as a way to create an enrollment pipeline.

“Working together, we can support as many companies as possible throughout their funding lifecycle, including helping them transition from private to public markets, LSEG said.

“Our ambition is to be the first global exchange group that is truly indifferent to whether a company is public or private, and Floww is another step on that journey,” he said.

The Department of Finance said this month it was still exploring the idea of ​​a new venue for small and medium-sized businesses, where trading could take place for regular but limited periods, rather than a full session every on weekdays as in the main market.

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Reporting by Huw Jones, editing by Louise Heavens and Edmund Blair

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