London Stock Exchange invests in Floww

(London: 15th March 2022) The London Stock Exchange Group (LSEG) announces partnership with Floww - creating strong network effects through quality data, driving efficient access to primary capital and liquidity in the private markets. D5 Capital is an early stage investor in Floww.

Floww complements LSEG’s strategy of modernising the capital markets and building our presence in the private space.  The partnership with Floww will make LSEG part of a network of private companies and investors built on data and insights, to ultimately facilitate private primary capital raising and liquidity. 

Floww is a data-centric network for private companies (with an initial focus on technology start-ups/scaleups) and investors, having started as a SaaS platform for venture capital firms and other investors to manage their portfolios. Floww’s vision - to make access to capital for growing companies merit-based, aligns with the Group vision. LSEG’s investment re-affirms our commitment to creating a fully integrated funding continuum. 

LSEG will be working in partnership with Floww to help launch Floww’s private primary capital raising facility. Floww will remain focused on continually improving access to capital raising opportunities through the provision of better data and information on private companies.

Our vision: Enabling the funding continuum

LSEG is passionate about supporting companies at all stages of maturity to access the capital to achieve their ambitions and make an economic impact. We have continued to champion growing businesses from across the UK and the world through our range of markets, thought leadership and regulatory advocacy.

We recognise that the lines between public and private markets are blurring, and companies demand flexibility when interacting with either to maximise their access to investors and optimise their cost of capital. Our goal is to enable just that – a smooth and efficient process of moving between the two. As an exchange, we want to be agnostic to issuers choosing to use the public or private route to finance their growth. 

Supporting the evolution of Private Markets

The global private equity, venture capital and credit markets have continued to grow over the last 10 years, aided by the rise of new platforms and new financial instruments. Increased capital and sophistication in private markets has meant that the IPO as an event has shifted to the later stages of a company’s growth. 

In addition to making public markets more accessible to companies at earlier stages of growth, we want to play an important role in the private markets by bringing our experience, robust technology and network enhancing efficiency for all participants involved.

We recognise the distinction between private and public markets will continue to blur through digital infrastructure and regulatory change. However, at present there remain many pain points for companies, investors and intermediaries within the private capital markets and when moving between the public and private markets. With our expertise and credibility in operating resilient markets at scale, LSEG can play a critical role in better connecting private and public markets by enabling a seamless funding continuum for capital hungry businesses.

Strengthening links with public markets

Combining our partnership with Floww and experience of creating and operating markets we are in the unique position to explore new ways of linking the private and public markets through regulation, technology and our product offerings.

We continue to work with the UK Government and regulators to support the development of the funding continuum ensuring companies at all stages of their lifecycle, in the UK and globally, are able to access the capital they need through the UK Capital Markets.