Lothbury Exchange Readies to Unleash Investment Platform

London-based company will match professional investors with emerging new companies.

You’ll have to hang on but Lothbury Exchange is getting ready to unveil its investment platform to match professional investors with emerging new companies.

The London-based entity’s website has a waiting list at present, but the intentions are relatively clear.

Lothbury Exchange says it will help young businesses raise funding, and provide investors access to equity in companies.

It doesn’t mean these businesses will necessarily be tech-oriented, but it’s another example of the entrepreneurial spirit in the UK. With start-ups popping up frequently, a lot of people want to take advantage of this healthy market.

eWeek UK is new itself but is keen to cover the fresh-faced crowd. We recently got the scoop on digital payments company Transferra as it prepares for launch; and also looked at ‘10 Tech Startups to Watch in 2021’.

Anyway, along with the platform for fundraising – Lothbury Exchange will help with the process. This includes financial and operational modelling, to development and execution.

There aren’t too many tech details at the moment, but the B2B investment opportunities are clearer. Lothbury Exchange explains that it is only suitable for investment professionals, certified high net-worth individuals, high net-worth companies/unincorporated associations. The startup makes it clear that its services do not include personal recommendations.

The company has five partners listed on its site. These comprise engineering team DLT Apps, law firm Fox Williams, Ashberg Multi-Family Office, compliance consultancy Thistle Initiatives Group and PR Shed.

In fact, Lothbury Exchange is an appointed representative of Ashberg. It is Ashberg that provides all regulatory functions on behalf of Lothbury Exchange; and Ashberg is authorised and regulated by the UK’s Financial Conduct Authority.

The two directors of Lothbury Exchange are Peter Denton and Nick Forbes. Both work at Lothbury Business Management in London. Lothbury Business Management is a consulting firm and was founded last year. A link on Lothbury Exchange’s site will take people to Lothbury Business Management if they are interested in its services.

eWeek UK contacted Lothbury Exchange for more information and a reply was received on 5 September. The company is targeting a beta launch in October. Funding for Lothbury Exchange was not disclosed but it did come from the directors.

Denton explains: “The [business] model is actually quite simple – we have a network of angel investors on one side which we are trying to match with appropriate investment opportunities on the other. In some cases, this includes active partnering of suitably-placed investors with companies to give them advisors or Non-Executive Directors that are appropriately placed in their market, giving them a competitive advantage and a better chance of success.”

Examining UK Tech VC Investment

If you’re partial to statistics and the bigger tech picture, then the ‘Tech Nation Report 2021’ reveals the positive situation.

UK tech VC investment is third in the world, hitting a record high of $15 billion (£10.8 billion) in 2020 in the face of “challenging conditions”. The US was top and China in second place. India came in fourth, followed by Germany and France.

Deep tech investment in the UK rose by 17% in 2020, the highest rate of growth globally. The UK is more attractive to international investors than ever; 63% of investment into UK tech came from overseas in 2020, up from 50% in 2016.

The UK is third in the world for investment into impact tech, which has increased 160% since 2018 while in the US it rose by 15% over the same period.

London is fourth for tech VC investment globally behind San Francisco, Beijing and New York at $10.6 billion (£7.7 billion).

The tech startup and scaleup ecosystem is valued at $585 billion (£424.2 billion) – 120% more than in 2017, and more than double the next most valuable ecosystem, Germany, at $291 billion (£211 billion).

Tech is also becoming more important for the UK economy. The rate of tech GVA contribution to the UK economy has grown on average by 7% per year since 2016.

Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 17 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.

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